Investors Dust Off Trump Trade, This Time Betting He’ll Lose
- Russian currency’s drop mirrors odds of Biden election win
- Mexico’s peso has beaten emerging peers in past three months
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Traders are reviving a currency pair from four years ago to bet on Donald Trump losing next month’s presidential election.
The trade involves the currencies of Mexico and Russia, the two emerging markets thought to be most affected by Trump’s foreign policy. In 2016 investors were buying the ruble and selling the peso in expectation the Republican candidate would mend relations with Russian President Vladimir Putin and cut trade ties with Mexico after winning the election. This time around, the trade has reversed as Joe Biden gains in the polls.