US dollar dips as Trump surges in presidential race

By Ovunc Kutlu

NEW YORK

The dollar posted losses late Tuesday against a basket of major currencies as the outcome of the U.S. presidential election leans in favor of Donald Trump.

The Republican candidate leads Democratic candidate Hillary Clinton in key states as his party has retained control of both houses of Congress.

The dollar fell 0.75 percent against the British pound to 0.79 as of 0615GMT.

The greenback lost 1.75 percent against the euro to 0.89, 0.3 percent against the Chinese yuan to 6.76, and 2.8 percent against the Japanese yen to 102.4.

A Trump presidency is perceived as creating more uncertainty for world markets, compared to Clinton, according to analysts.

The Mexican peso, however, dived around 10 percent to its all-time low against the dollar amid worries U.S.-Mexico trade relations would take a downturn.

Futures on Wall Street also decreased after the stock market prepared for a Clinton victory and posted gains in the last two days.

Dow futures plunged 750 points, or 3.3 percent.

The S&P 500 and the Nasdaq futures decreased around 5 percent each, before trading was halted.