NEW YORK: The dollar bounced after sinking to its lowest level in nearly three years on Wednesday, with markets anticipating a Democrat win in the US Senate election in Georgia that would clear the path for a larger fiscal stimulus package.

As markets priced in the Democrats winning both seats, the dollar index hit its lowest since March 2018 at 89.206, but was last up 0.294% at 89.726.

The dollar also fell to its lowest in six years versus the Swiss franc at 0.87585.

After a fall of nearly 7% in 2020 and dropping as much as 0.9% in the new year, the dollar turned higher as a crowded trade began to unwind. Analysts still expect the longer-term trend for the greenback to be weaker, however.

The yuan has gained around 10% on the dollar since last May as China’s economic rebound has led the world’s pandemic recovery.

Bitcoin traded above $35,000 for the first time, rising to $35,879.35 in the Asian session and extending a rally that has seen it rise more the 800% since mid-March.

These gains eased somewhat, with the cryptocurrency last up 1.68% at $34,610.52.