Dollar Hit 10-Week Low Following Biden’s Win

Dollar Hit 10-Week Low Following Biden’s Win

09 Nov 2020 09:57 AM

Dollar was down to its 10-week low as investors bought trade-exposed currencies on expectations that Joe-Biden’s win as the U.S. President will boost world commerce and that monetary policy will remain easy.

Biden won the race by crossing 270 Electoral College votes on Saturday by winning the battleground state of Pennsylvania. Republicans appear to have retained control of the Senate for now.

The prospect of a divided Congress weighs on the expectations of a massive U.S. fiscal stimulus package, which has sent bond yields sharply lower in anticipation of less borrowing and more quantitative easing from the U.S. Federal Reserve.

Volatility was comparatively low as the market had largely reacted on Friday itself and because Donald Trump, the first incumbent to lose a re-election bid in 28 years, has made no sign of conceding.

Market participants are cautious as coronavirus cases surge, with the global count of infections exceeding 50 million on Sunday as cases in the United States surpassed 10 million - stoking worries of more lockdowns.