Dollar dips on hopes of some stimulus, markets price for a Biden victory
The dollar dipped on Wednesday as risk appetite improved on hopes of at least some new fiscal stimulus before the November 3 U.S. Presidential election, and as investors priced for the prospect of a Democrat victory next month.
President Donald Trump said late on Tuesday that Congress should quickly extend $25 billion in new payroll assistance to U.S. passenger airlines furloughing thousands of workers as air travel remains down sharply amid the coronavirus pandemic.
Trump had earlier on Tuesday abruptly ended talks with Democrats on an economic aid package, which sent stock markets tumbling and boosted demand for the dollar.
The dollar index against a basket of major currencies =USD 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 0.40% against the safe haven Japanese yen JPY= to 106.04 yen.
The euro EUR= rose 0.26% to $1.1765.
The greenback has also weakened on bets that Democratic presidential candidate Joe Biden will win as election polls show him taking a widening lead, and on growing expectations that Democrats could also take control of the Senate.
Reference: Reuters
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