NEW YORK: The dollar dipped on Wednesday as investors looked ahead to a possible Democrat victory at the November 3 US Presidential election, and after US President Donald Trump said that he was ready to sign off on some stimulus measures.
Election polls are showing a widening lead for Democratic presidential candidate Joe Biden, while some betting markets are also reflecting the prospect of Democrats taking control of the US Senate next month.
“FX markets are starting to, at the margin, price in not only a Biden presidency but also a blue sweep as well,” said Mazen Issa, senior FX strategist at TD Securities in New York.
The dollar index, tracking the unit against a basket of major currencies, fell 0.19% on Wednesday to 93.64. It reached a two-week low of 93.33 on Tuesday, before Trump’s comments.
The greenback gained 0.25% against the safe haven Japanese yen to 105.88 yen.
The euro rose 0.32% to $1.1771 as dollar weakness overcame data showing that German industrial output edged down in August following three months of relatively strong increases, suggesting the recovery in Europe’s largest economy from the coronavirus shock was starting to lose steam.—Reuters
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