American Dollar skids from two-month highs ahead of 1st US Presidential debate

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American Dollar skids from two-month highs ahead of 1st US Presidential debate

On Tuesday, US Dollar Index (DXY) measured against a basket of six major currencies had faltered as much as 0.3 per cent, as investors appeared to have enter into a sell-off wave in a bid to capitalize on the recent gains of the greenback, while a cautious look over the first Presidential debate between the Democratic challenger Joe Biden and the Republican President Donald Trump late on the day had strained investors’ optimism.

In point of fact, fretting what could be an acrimonious debate given the snobbery the US President had shown off during his recent terms alongside a New York Times report which revealed over the weekend that the US President Donald Trump had paid off only $750 in federal taxes over his first couple of years in the White House, the investors seemed to be swaying away from the US Dollar, while the American currency fell to a one-week low against the bloc’s common currency alongside the safe-haven Swiss Franc.

Apart from that, the greenback had also beaten a hasty retreat against the commodity-oriented loonies like of Canadian Dollar alongside the China-trade based Australian and New Zealand Dollar alongside the Norwegian Krona.

Dollar falls ahead of much-awaited Trump-Biden debate

Citing statistics, on the day’s FX market closure, after circulating much of the session closer to a key support level of 94.20, the American currency had wrapped up the day 0.3 per cent down to 93.79.

The US Dollar Index had hit a two-month peak on last Friday. Apart from that, in light of a cautious view from the market participants ahead of the much-awaited Biden-Trump debate, hours before which the Democratic candidate Biden had revealed his tax filings meaning the US President’s sustained reluctance to disclose his tax filings would likely to be a key flashpoint in the debate, the bloc’s common currency euro had firmed across the board and winded up the day 0.6 per cent higher to $1.1737, while the eurozone currency had also hut a two-week high against its Japanese counterpart.

In tandem, against the safe-haven Swiss Franc, the American Dollar slipped 0.6 per cent to a one-week low of $0.9194.