Dollar tumbles against yen & euro on strong Trump showing

The dollar tumbled against the yen and euro while the Mexican peso fell off a cliff as polling results in the knife-edge US presidential race pointed to a strong showing by Donald Trump.

A strong yen could derail Japanese Prime Minister Shinzo Abe’s spend-for-growth policy which has boosted stock prices and pushed the Japanese currency down.

The dollar plunged more than four percent to 101.19 yen before bouncing back to 101.51 yen with caution setting in on reports of an emergency meeting called by Japanese authorities in the face of market turmoil.

“The meeting on exchange of information about financial markets” between the Bank of Japan, the Finance Ministry and the Financial Services Agency “will be held at 3:00 pm (0600 GMT) at the Finance Ministry,” a BoJ spokesman stated.

The greenback shed nearly three percent against the euro, which bought $1.1300 in Tokyo trading.

The Canadian dollar, meanwhile, also traded lower, with the greenback rising to about 1.35 to the loonie.

The peso, which has become a proxy for the property mogul’s chances of becoming US president, slumped to a historic low against the dollar.

The dollar was buying 20.78 pesos, eclipsing the Mexican currency’s previous low of 19.93 set in September.

Financial markets have favoured Democrat Clinton over Republican Trump, whose wild policy pronouncements have sown uncertainty.

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