Dollar near 1-week lows ; Yuan soars

Dollar near 1-week lows ; Yuan soars

05 Nov 2020 02:24 PM

The dollar held near its one-week low against other currencies on Thursday as investors unwound some of their safe-haven demand for the greenback as the U.S. Presidential election entered its last phase.

Joe Biden is predicted as a U.S. election win over President Donald Trump after victories in Michigan and Wisconsin but his party is falling short of expectations in Congressional elections, with the Senate looking increasingly likely to stay in Republican hands, making it hard to implement stimulus.

But financial markets were braced for weeks of uncertainty as Trump has opened a multi-pronged attack on vote counts in various states by pursuing lawsuits and demand of a recount.

The dollar index against a basket of major currencies stood at 93.23, down 0.2% in early trading in London.

Some of the biggest gains were seen in currencies which had borne the brunt of Trump's protectionist policies in recent years, with the Chinese Yuan rising to more than a two-year high.

The euro bought $1.1760 on Thursday, up 0.3% from the previous session as some investors bet on Joe Biden's victory.

The British pound broke above $1.30 after the central bank ramped up its bond purchase plan.

Broader currency market volatility gauges declined with a widely-watched index falling to more than three-month lows.