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Significance
The peso has lost a further 6.3% against the dollar since September 6 despite the decision by the US Federal Reserve on September 21 to keep its benchmark rate on hold, underpinning a rally in emerging market assets. A victory for Trump would weigh heavily on the dollar if investors pile into haven assets such as the Japanese yen and German government bonds.
Impacts
At nearly 30% of total outstanding debt, negative-yielding government bonds will increase demand for higher-yielding emerging market assets.
Credibility and efficacy of Japanese and European monetary policy in stabilising markets will be a focal point for investor anxiety.
Oil prices are still struggling to rally following a proposal by OPEC members to cut production.
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2016
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