FOREX-Dollar sinks after Biden clinches U.S. presidency – Reuters

    * Dollar falls as Biden wins; losses limited by uncertainty
    * Yuan makes fresh 28-month high offshore as trade war seen
    * Kiwi hits 19-month peak; Aussie at seven-week high
    * Graphic: World FX rates in 2020

    By Tom Westbrook
    SYDNEY, Nov 9 (Reuters) - The dollar hit a 10-week low on
Monday as investors heralded Joe Biden's election as U.S.
president by buying trade-exposed currencies on expectations
that a calmer White House could boost world commerce and that
monetary policy will remain easy.
    The Chinese yuan struck a 28-month peak, the New
Zealand dollar rose 0.6% to hit a 19-month high and the
Australian dollar made a seven-week top as the dollar
index fell to its lowest since early September.
    Sterling hit its highest in more than two months
while the euro rose 0.1%, extending an almost 2% gain
from last week to hit a two-month high of $1.1895.
    Biden crossed the threshold of the 270 electoral college
votes required for victory on Saturday by winning the
battleground state of Pennsylvania. Republicans appear to have
retained control of the Senate, though the final makeup may not
be clear until runoff votes in Georgia in January.
    "The outcome is ideal from a market point of view," said CMC
Markets' chief strategist in Sydney, Michael McCarthy.
    "Neither party controls the Congress, so both trade wars and
higher taxes are largely off the agenda."
    The prospect of more gridlock also means that expectations
for a massive U.S. fiscal stimulus package have been lowered,
which has sent bond yields down in anticipation of less
borrowing and more quantitative easing from the Federal Reserve.
    The buoyant mood sent equities surging and the safe-haven
Japanese yen slipped a fraction to 103.42 per dollar -
just below an eight-month high made on Friday when the dip in
U.S. yields deterred investment flows from Japan.
    The yuan, particularly sensitive to the election outcome
because of a perception that Biden will take a softer or more
predictable line on China, was also boosted by strong Chinese
trade data over the weekend to stand at 6.5758 per dollar.

   The South Korean won hit a 21-month high of 1,115.33
per dollar and the Mexican peso rose 0.7% to 20.3980 per
dollar, its highest since March.
    "The undertow of dollar weakness is probably going to have a
bit of a way to run in terms of the Fed and also less trade
tension as something positive for other currencies," said
Westpac currency analyst Sean Callow.
    Selling was held in check by underlying virus worries and
because Donald Trump, the first incumbent to lose a re-election
bid in 28 years, has made no sign of conceding while fighting
legal battles to overturn the result.
    Traders are also wary of fresh lockdowns as coronavirus
cases surge, with the global tally of infections topping 50
million on Sunday as cases in the United States surpassed 10
    "To me the bearishness that's in the dollar needs to get
reassessed," said Hayden Briscoe, head of fixed income at UBS
Asset Management in Hong Kong.
    He cited the possibility of fresh lockdowns in the United
States or hoped-for European stimulus ultimately disappointing
as major risks to the dollar's decline.
    Europe's fiscal and monetary responses to a second wave of
coronavirus infections, which have already prompted new
restrictions on everyday life, will be in focus when European
Central Bank President Christine Lagarde speaks on Thursday.
    Later on Monday are appearances from Bank of England
Governor Andrew Bailey and chief economist Andy Haldane at 1035
GMT and 1400 GMT, where talk of negative rates is in focus.
Dallas Fed President Robert Kaplan makes a speech at 2200 GMT.
    On Wednesday, the Reserve Bank of New Zealand meets, with
expectations it will hold rates but lay the framework for going
negative next year.
    In emerging markets, the beaten-down Turkish lira
 rose more than 2% in the wake of the ouster of the
central bank chief and the resignation of Turkey's finance
minister over the weekend.
    The lira has slid 30% to record lows this year amid the
coronavirus pandemic as investors worried about falling forex
reserves and double-digit inflation.
    Currency bid prices at 4:42PM in Sydney (0542 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar                  $1.1892        $1.1877     +0.13%         +6.08%      +1.1896     +1.1861
 Dollar/Yen                   103.4750       103.2800    +0.20%         -4.72%      +103.5050   +103.3000
 Euro/Yen                     123.04         122.69      +0.29%         +0.89%      +123.1100   +122.7000
 Dollar/Swiss                 0.8994         0.9003      -0.10%         -7.05%      +0.9002     +0.8988
 Sterling/Dollar              1.3188         1.3150      +0.30%         -0.55%      +1.3192     +1.3155
 Dollar/Canadian              1.3008         1.3064      -0.42%         +0.14%      +1.3062     +1.3007
 Aussie/Dollar                0.7297         0.7261      +0.51%         +4.00%      +0.7300     +0.7268
 NZ                           0.6812         0.6773      +0.59%         +1.25%      +0.6816     +0.6785
 Dollar/Dollar All spots
Tokyo spots
Europe spots 
Tokyo Forex market info from BOJ 

 (Reporting by Tom Westbrook; Editing by Ana Nicolaci da Costa
and Jacqueline Wong)

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