Dollar edges lower as US election outcome cheers global markets
SPY•The dollar edged lower after Democrats won sizable majorities in both chambers of Congress, easing political uncertainty and helping fuel gains in global equities. The dollar index fell 0.06% to 101.41, while the euro rose 0.12% to $1.1241.
1. Dollar slips after election
The dollar edged lower after Democrats swept to sizable majorities in the Senate and House of Representatives, easing concerns about contested results and supporting a rally in global equities and US Treasuries. The dollar index fell 0.06% to 101.41, following a 0.36% decline in the prior session.
2. Other currencies strengthen
The yen firmed 0.08% to 158.25 per dollar after Bank of Japan minutes reinforced expectations for further rate hikes. Sterling rose 0.38% to $1.3462 ahead of a Bank of England decision expected to bring another rate increase; the Australian dollar and New Zealand dollar also gained.
3. Rates and employment data
Markets priced an 81.2% chance of a Federal Reserve rate increase of at least 25 basis points in December, up from 77.4% in the prior session. ADP reported that US private payrolls rose by 86,000 in October, above the 69,000 estimate.
