By Carla Mozee, MarketWatch

The U.S. dollar dropped more than 1% Wednesday, swept sharply lower as Donald Trump upended market expectations as he won the U.S. presidential race.

The ICE U.S. Dollar index , a measure of the dollar's performance against a basket of six rivals, fell 1% to 96.922, but was off session lows.

Trump will become the 45th president of the United States as he beat Democratic Party nominee Hillary Clinton to get past the 270 electoral votes needed to capture the post.

Markets had been pricing in a White House win for Clinton, according to some commentators. She was largely been favored by financial markets as the candidate promising more stability and continuity.

Other financial markets were sharply lower Wednesday, with futures for the Dow Jones Industrial Average down 400 points. Earlier, they tumbled by 750 points as Trump claimed victories in several key battleground states. (http://www.marketwatch.com/story/dow-futures-plunge-450-points-on-election-turmoil-2016-11-08)

See:Live results show Trump on a roll across battleground states (http://blogs.marketwatch.com/capitolreport/2016/11/08/election-2016-live-results-and-updates-as-voters-go-to-polls-to-pick-clinton-or-trump/)

"What will determine if these moves are enhanced over the coming days and weeks is the degree to which Trump moderates or enhances his campaign rhetoric, especially in the areas trade, the economy and the Fed," said Simon Smith, chief economist at FxPro, in a note.

"That may appear unlikely at first sight. Why change what got you votes in the first place? But it's hard to see on-shoring as being a net gain for the economy,running against basic theory of comparative advantage," he added.

The Mexican peso , emerging as a bellwether for the race, plunged to record lows it appeared Trump was set to become the next U.S. president. The peso was losing 8% to leave the dollar buying 19.89 pesos, but it had been down 13% earlier. It was the currency's largest daily drop since the so-called Tequila Crisis, according to the Financial Times. (https://www.ft.com/content/e70025d2-a628-11e6-8898-79a99e2a4de6?ftcamp=published_links%2Frss%2Fmarkets%2Ffeed%2F%2Fproduct)

The euro was buying $1.1121 compared with $1.1016 late Monday. Against the yen, the greenback was at Yen103.27, compared with Yen104.46.

But the pound bought $1.2421, up from $1.2368.

(END) Dow Jones Newswires

November 09, 2016 03:19 ET (08:19 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.