Nov 4, 2020 - Politics & Policy

How the Chinese yuan fared on election night

Data: FactSet; Chart: Axios Visuals
Data: FactSet; Chart: Axios Visuals

The Chinese yuan and Mexican peso, which have both been tied to bets on Trump's election prospects, saw wild swings on election night.

What it means: Few expect Joe Biden to significantly alter U.S. policy toward China if he ends up becoming president, but the Trump administration's increasingly hawkish tone on China in recent days helped move the Chinese currency significantly as betting markets moved in and out of Trump's favor.

  • The dollar's value against the yuan initially fell on expectations of a Biden victory but then rose again as it looked like Trump was poised to win.

The bottom line: By the end of Tuesday night, the yuan was back where it began the day, at around 6.7 yuan per dollar, according to FactSet data.

  • Over the course of an hour and a half, the value of the dollar against the Mexican peso fell to 20.90 pesos per dollar, its lowest since Oct. 26, and rose to 21.91 pesos per dollar, the highest since Oct. 2.
Go deeper