Dollar dips on stimulus optimism, bets on Biden victory
The dollar fell to three-week lows on Friday on optimism that a deal for new U.S. stimulus would be reached, and as investors bet that Democrat Joe Biden is more likely to win the U.S. presidency and offer a larger economic package.
The dollar index against a basket of major currencies fell 0.54% to 93.05, the lowest since September 21, and fell below its 50-day moving average for the first time since then. It has held within a range from 91.74 to 94.75 since late July.
The euro rose 0.57% to $1.1825. The greenback weakened 0.39% against the Japanese yen to 105.60 yen.
The U.S. currency also fell on rising expectations that Biden will win the Nov. 3 election, and that Democrats could win the Senate. A Democratic victory would likely result in larger stimulus, which would be negative for the dollar.
The offshore yuan strengthened to 6.6778, the strongest since April 2019.
The British pound rose, brushing off worse than expected UK growth data as investors became more optimistic about a Brexit deal being reached ahead of a key European Council summit next week.
Sterling gained 0.79% to $1.3035.
Reference: Reuters
Thai
Eng