On Thursday, the American Dollar Index (DXY) measured against a basket of six major currencies on an average fell to a two-week low and US Dollar plunged to a seven-month low against the safe-haven Japanese Yen, as the Democratic contender Joe Biden edged closer to defeating Trump in a fiercely contested November 3 US Presidential election with just a few results yet to be announced.
Aside from that, regardless of the election outcome, the US Federal Reserve is expected to stay dovish in a near- to intermediate-term outlook after concluding its two-day meeting, which in effect had pummelled the US Dollar further.
On top of that, as the Democratic challenger Joe Biden had been getting closer to a triumph and it appeared that the Democrats might just get hold of the US Senate alongside the House as well, global stock indices surged across the board, which in effect had winded a sell-off wave for the US Dollar further.
US Dollar pummels as a likely Biden win bolsters stimulus hope
In point of fact, Joe Biden has been expected to release a raft of stimulus packages in order to revive a slowing US economy, while a possible majority in the US Senate for the Democrats had feathered the expectation further.
Quoting statistics, the US Dollar Index fell as much as 0.74 per cent to 92.71 during preparation of this report, while the bloc’s single currency climbed 0.78 per cent to $1.1813. Aside from that, the safe-haven Japanese yen gained 0.78 per cent to 03.67 yen per Dollar, while the Chinese Yuan hit a two-year peak of ¥6.5994 against its American peer.
In tandem, while this report was being prepared, at mid-day US trading hours, Democrats have been just three seats shy of a majority in the US Senate, while Republicans had been ahead in 48 seats.