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Daily Review 11.10.2016

Mexican peso surges on Trump’s lackluster weekend; yuan’s value sinks to six-year low

The Mexican peso registered its one-month high on Monday trading as Republican nominee, Donald Trump, experienced a troubling weekend that harmed his chances of winning the US presidency, while the Chinese yuan gave the market a short scare as it fell to its six-year low against the US dollar.

The peso was seen as the most vulnerable currency should Trump secured the presidential seat because of impending threats to be slammed on Mexican imports. And when the billionaire was gaining some grounds in national polls against his Hillary Clinton, it has been slumping.

But on Monday, the peso hit its highest level in a month as it closed 2.4% higher at 18.8422 against the greenback after Trump’s performance on Sunday’s debate and the release of the 2005 video showing his lewd comments against women hammered his prospects for winning.

Meanwhile, China’s major currency, the yuan, fell to its lowest level since September 2010 on its first day of trading after the Golden Week holiday.

The Chinese yuan sent some scare to investors as it briefly touched midpoint 6.7008 versus the US dollar set by the People’s Bank of China.

Oil touches one-year high as Russia nods on joining production freeze

Oil futures logged to its highest level in more than a year as Russia confirmed its participation in OPEC’s output cut to pump up oil prices that has been struggling for two years.

On Monday, oil prices finished 3% higher after Russian President Vladimir Putin said that an output freeze would be ideal to stabilize the energy sector.

International benchmark Brent crude futures added $1.54, or 3.1% to settle at $53.73 - its highest since October 9, 2015.

The West Texas Intermediate crude advanced 3.1% by gaining $1.54 to close at $51.60, its highest since June 9.

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