Dollar dips with US midterm results in focus
SPY•The dollar fell against most major currencies ahead of US midterm election results, with the dollar index down 0.2% at 101.7. The euro rose 0.2% to $1.1212, and the US 10-year Treasury yield fell 4 basis points to 4.919%.
1. Dollar slips before results
The dollar fell against most major currencies on Wednesday as investors awaited US midterm election results. The euro rose 0.2% to $1.1212, the yen strengthened to 158.30 per dollar, and the dollar index edged down 0.2% to 101.7.
2. Election and policy focus
Investors were watching whether Democrats could take control of Congress. Commonwealth Bank of Australia currency strategist Carol Kong said the bank expected Democrats to win both chambers; she said a Democratic sweep could prompt further dollar selling because it would limit government spending over Donald Trump's term.
3. Yields and oil
The US 10-year Treasury yield fell 4 basis points to 4.919%. Oil was little changed at $103.85 a barrel, while investors weighed talks to end wars in Iran and Ukraine against concerns that attacks could disrupt supplies. Kong said escalation in the Middle East could lift oil prices and support the dollar.
