The Mexican peso has experienced its worst drop since the pandemic following Morena’s Presidential victory.

The peso had its worst day since the pandemic after Claudia Sheinbaum won a landslide victory in the presidential election, and her party, Morena, along with its allies, appeared poised to dominate Congress, according to preliminary counts.

The Mexican peso retreated against the U.S. dollar on Monday. The local currency lost significant ground in reaction to the results of Sunday’s election, in which Morena secured the presidency and a qualified majority in Congress.

The exchange rate ended the day at 17.7141 pesos per dollar. Against a level of 16.9682 pesos on Friday, according to data from the Bank of Mexico (Banxico), this movement represented a decrease of 74.59 centavos, equivalent to 4.40 percent.

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The dollar’s price fluctuated within a wide range, hitting a high of 17.7545 pesos and a low of 16.9179 pesos. The Dollar Index (DXY) of the Intercontinental Exchange, which measures the greenback against a basket of six currencies, fell 0.53% to 104.12 points.

Analysts from various companies and academics highlighted the fact that the significant depreciation of the currency occurred the day after Morena’s overwhelming victory at the polls, reflecting concerns about its future impacts.

Claudia Sheinbaum has promised to continue the transformations promoted by President Andrés Manuel López Obrador, who throughout his term increased the minimum wage and implemented social programs that boosted his popularity.