REFILE-FOREX-Dollar climbs, Mexican peso dives as U.S. presidential race too close to call

(Corrects to add attribution to first quote in paragraph 4 and
fix grammar in paragraph 14)
* Dollar jumps as U.S. presidential race neck-and-neck
* Mexican peso, Chinese yuan hit hardest on trade war
worries
* Trump keeps slight lead in Florida

By Hideyuki Sano and Eimi Yamamitsu
TOKYO, Nov 4 (Reuters) - The U.S. dollar jumped and
risk-sensitive currencies weakened on Wednesday as early results
in the U.S. presidential election showed a very tight race,
prompting a wind-back of bets on a victory by Democratic
challenger Joe Biden.
President Donald Trump, who has so far trailed in polls, has
maintained a slim lead in key battleground state of Florida,
with the Chinese yuan and Mexican peso hit hardest by the
spectre of four more years of his aggressive trade policy.
(For multimedia U.S. election coverage, click: https://www.reuters.com/world/us-election2020
)
"I think the odds of a clean sweep are diminishing, almost
by the minute. That reduces the possibility, or the likelihood
at least of a large stimulus program being agreed to in the
first days of a Biden administration," said Matt Sherwood, head
of investment strategy at Perpetual in Sydney.
The Mexican peso fell almost 4% at one point and last traded
at 20.905 per dollar MXN=D4 , down almost 3% while the offshore
Chinese yuan fell 0.8% to 6.7362 to the dollar CNH= , hitting
one-month low at one point.
Among major currencies, the euro fell 1% to a low not seen
since late July and last stood at $1.1624 EUR= , down 0.82% on
day.
The Australian dollar lost 0.6% to $0.7128 AUD=D4 while
the British pound dropped 0.6% to $1.2983 GBP=D4 . The Canadian
dollar fell 0.65% to C$1.3218 per U.S. unit CAD=D4 . All of
them sank more than one percent at one point.
The Japanese yen also gave up 0.65% to 105.195 per dollar
JPY= .
Trump was narrowly leading Biden in Florida, while other
competitive swing states that will help decide the election
outcome, such as Georgia and North Carolina, remained up in the
air. That undercut expectations in markets this week that Biden
will likely win the presidency and adopt a large stimulus to
support the economy.
"If Biden won Florida, he was almost certain to win the
entire race but uncertainties seem high and we are seeing a
correction in risk-on trades," said Yujiro Goto, head of FX
strategy at Nomura Securities.
The dollar index measuring the greenback against a basket of
currencies .DXY gained 0.7% to 94.202.
Investors were increasingly braced for the possibility that
the election results may not become clear on Wednesday, with
markets hedging against the risk of a contested election or a
potentially drawn out process as mail in ballots were counted.
Analysts at Morgan Stanley have said if the results are too
close to call by 12pm EST on Wednesday (0500 GMT on Thursday),
it will likely be too close to call for several days beyond
that.
"A contested election probably takes all of the SPX, Bond
yields and the USD (at least versus majors) down meaningfully,"
said Alan Ruskin, chief international strategist at Deutsche
Bank in New York.