NEW YORK The dollar weakened slightly against a basket of major currencies on Friday amid uncertainty over a new round of stimulus ahead of the upcoming U.S. elections, with the greenback set to record a weekly decline of around 1%.
By John McCrank
NEW YORK, Oct 23 The dollar eased against a
basket of major currencies on Friday following the final U.S.
presidential debate, with fading prospects for a coronavirus
relief package before the Nov. 3 elections pulling the greenback
toward a weekly decline.
Republican President Donald Trump and Democratic challenger
Joe Biden squared off on Friday in a less raucous debate than
their previous meeting, but tensions were still high, with a
focus on the handling of the COVID-19 pandemic and plenty of
personal attacks thrown into the mix.
"It was certainly more productive than the first one, but I
don't think there was any meaningful shakeup in the outlook for
the election," said Joe Manimbo, senior market analyst at
Western Union Business Solutions.
The market is looking at a potential Biden victory as
setting the stage for a more robust post-election rescue
package, which is reducing the demand for the safe-haven
greenback, he added.
The dollar index was last down 0.13%, bringing it
nearly 1% lower for the week.
Given the potential risk of a contested election result, the
dollar is likely to be confined to the range it has been in for
the last several weeks, Manimbo said.
In Europe, business surveys in France and Germany showed the
impact of the second wave of COVID-19 infections in the euro
zone's two biggest economies, threatening to derail the bloc's
Despite the data, the euro edged higher 0.2% against
the greenback to $1.1844.
"The PMIs weren't good, but they weren't as bad as expected,
and that's the important point," said Marshall Gittler, head of
investment research at BDSwiss Group.
"Furthermore, stock prices are being boosted by some good
earnings reports from Daimler, Barclays and others, and that's
encouraging a 'risk-on' mood in FX too," he added.
The euro also firmed after Reuters reported that France was
laying the groundwork for a fisheries compromise to help the
European Union strike a Brexit deal with Britain.
Sterling also gained on the report, before easing back to
1.3065, down 0.12% against the dollar.
The safe-haven yen dipped 0.15% to 104.76 per
dollar following comments on Thursday by U.S. House of
Representatives Speaker Nancy Pelosi that stimulus talks had
The Chinese yuan ticked down 0.11% against the dollar
after an official at China's foreign exchange regulator said it
has been more stable than expected, suggesting authorities are
not too worried about its recent rise.
The yuan has gained about 7.5% since the end of May as China
led the global coronavirus recovery.
Currency bid prices at 9:52AM (1352 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Euro/Dollar $1.1840 $1.1819 +0.18% +5.62% +1.1860 +1.1787
Dollar/Yen 104.7600 104.9250 -0.15% -3.54% +104.9300 +104.5800
Euro/Yen 124.03 123.93 +0.08% +1.71% +124.2100 +123.4200
Dollar/Swiss 0.9049 0.9072 -0.25% -6.49% +0.9092 +0.9035
Sterling/Dollar 1.3065 1.3083 -0.12% -1.48% +1.3121 +1.3051
Dollar/Canadian 1.3136 1.3139 -0.02% +1.12% +1.3157 +1.3110
Aussie/Dollar 0.7117 0.7118 +0.01% +1.45% +0.7158 +0.7103
Euro/Swiss 1.0712 1.0720 -0.07% -1.29% +1.0726 +1.0703
Euro/Sterling 0.9061 0.9027 +0.38% +7.18% +0.9074 +0.9022
NZ 0.6676 0.6675 +0.00% -0.80% +0.6704 +0.6657
Dollar/Norway 9.2415 9.2585 -0.10% +5.44% +9.2935 +9.2045
Euro/Norway 10.9410 10.9329 +0.07% +11.21% +10.9675 +10.9042
Dollar/Sweden 8.7567 8.7509 +0.04% -6.32% +8.7933 +8.7345
Euro/Sweden 10.3690 10.3651 +0.04% -0.96% +10.3825 +10.3519
(Reporting by John McCrank; editing by Jonathan Oatis)
NEW YORK The dollar index ticked higher on Thursday, easing off a seven-week low as hopes for a coronavirus aid package ahead of the U.S. elections faded and COVID-19 cases surged around the world, giving a slight bid to safe-haven assets like the greenback.
By John McCrank
NEW YORK, Oct 22 The dollar index edged higher
on Thursday, backing off of a seven-week low as hopes for a
coronavirus relief package ahead of the Nov. 3 U.S. elections
faded and COVID-19 cases surged around the world, boosting
demand for safe-haven assets like the greenback.
Investors were also digesting new U.S. jobless claims data
that showed a bigger-than-expected drop, but remained at
extremely high levels, indicating a slowdown in the labor market
and broader economic recovery from the coronavirus pandemic as
the boost from previous fiscal stimulus fades.
Negotiations toward a new coronavirus aid bill were thrown
into question after Republican President Donald Trump took to
Twitter late on Wednesday to accuse Democrats of being unwilling
to find an acceptable compromise and amid deep opposition among
Senate Republicans to a large new stimulus package.
But U.S. House of Representatives Speaker Nancy Pelosi on
Thursday said negotiators were making progress and that
legislation could be hammered out "pretty soon."
"All this back-and-forth between Pelosi and the White House
may not actually yield anything because at the end of the day,
it seems like they are running out of time," said Kathy Lien,
managing director at BK Asset Management.
"The near possibility that we're going to get more bad news
or at least no good news from now to the election is driving
investors out of the greenback," she said.
The stimulus package is likely to come up when Trump faces
off against Democratic rival Joe Biden later on Thursday in
their final debate ahead of the elections.
News that Europe has seen the number of coronavirus cases
surge to a record high, with Spain becoming the first Western
European country to exceed 1 million infections, added to the
cautious tone in world markets.
This backdrop appeared to favor the dollar, which had fallen
for the last three days against a basket of other major
The dollar index was last trading at 92.893, 0.18%
firmer on the day and above the 92.469 low hit on Wednesday that
marked the lowest level since Sept. 2.
The euro was 0.3% lower versus the dollar at
$1.1862, down from Wednesday's one-month highs of $1.18805.
"The euro has been undeservingly strong, given the
significant increases in COVID-19 cases and the fact that the
ECB will have no choice but to lower interest rates," said Lien.
She said she will be closely watching PMI reports from the
euro zone due out on Friday, which could trigger a more
aggressive decline in the euro.
The tone in currency markets was generally subdued as
investors waited for new impetus.
"The U.S. presidential elections are only 12 days away,
before that nobody wants to commit too much to a particular
direction in euro/dollar," said Commerzbank FX analyst Esther
Having hit six-week highs on Wednesday amid Brexit optimism,
sterling too pulled back against the U.S. currency. The British
pound was last down 0.35% at $1.3103.
The Australian dollar was 0.1% softer versus the
greenback at $0.7110, while the New Zealand dollar was 0.21%
higher at $0.6670 - up from the $0.6551 low touched on
Elsewhere, the Chinese yuan retreated from a 27-month high
hit a day earlier on signs the authorities have become
increasingly wary over the recent rapid gains in the currency.
The offshore Chinese yuan was last up 0.42% at
6.6709 per dollar.
Currency bid prices at 9:48AM (1348 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Euro/Dollar $1.1826 $1.1862 -0.30% +5.49% +1.1867 +1.1812
Dollar/Yen 104.6900 104.5700 +0.11% -3.61% +104.7750 +104.5500
Euro/Yen 123.79 124.02 -0.19% +1.51% +124.0900 +123.6700
Dollar/Swiss 0.9070 0.9053 +0.19% -6.27% +0.9080 +0.9051
Sterling/Dollar 1.3103 1.3147 -0.35% -1.22% +1.3152 +1.3083
Dollar/Canadian 1.3150 1.3144 +0.05% +1.23% +1.3177 +1.3133
Aussie/Dollar 0.7110 0.7117 -0.10% +1.33% +0.7119 +0.7085
Euro/Swiss 1.0726 1.0737 -0.10% -1.16% +1.0748 +1.0721
Euro/Sterling 0.9022 0.9018 +0.04% +6.72% +0.9046 +0.9015
NZ 0.6670 0.6655 +0.21% -0.89% +0.6675 +0.6634
Dollar/Norway 9.2290 9.2075 +0.26% +5.23% +9.2600 +9.2020
Euro/Norway 10.9150 10.9390 -0.22% +10.95% +10.9660 +10.9060
Dollar/Sweden 8.7655 8.7254 +0.15% -6.23% +8.7854 +8.7220
Euro/Sweden 10.3657 10.3503 +0.15% -0.99% +10.3959 +10.3485
(Reporting by John McCrank; additional reporting by Dhara
Ranasinghe in London; editing by Jonathan Oatis)
NEW YORK The dollar hit a seven-week low against a basket of currencies on Wednesday after U.S. President Donald Trump and House Speaker Nancy Pelosi boosted hopes for a large fiscal stimulus package, prompting some traders to ramp up bets on riskier currencies.
Nasdaq Inc on Wednesday reported third-quarter profits that topped Wall Street views, helped by strength in the transatlantic exchange operator's indexing business and a surge in trading volumes.
NEW YORK The U.S. dollar dipped on Tuesday, hitting a one-month low against a basket of major currencies, as investors awaited the outcome of fiscal stimulus talks ahead of the upcoming U.S. presidential election and coronavirus cases spiked in Europe.