Picture used for illustrative purpose. File
As early results of the US presidential election rolled in, the US dollar gained while riskier currencies dipped on Wednesday.
At the opening of European markets, the dollar climbed by 1%, the offshore-traded yaun while Australian dollar and Norwegian crown fell.
Investors who have been hopeful for Joe Biden’s victory are beginning to lose hope after President Donald Trump won in the key battleground states of Florida, Ohio and Texas.
Chris Turner, global head of markets at ING said, one of the few things clear so far is that we are not going to see a Democrat landslide win as polls had suggested. That has wrong-footed an FX market which was positioned for some clarity.
Biden’s win is expected to improve the pandemic-hit economy via the injection of large stimulus while Trump’s re-election is expected to hurt currencies hit by his trade policies.
Overnight volatility gauges for euro-dollar and dollar-yen fell, however, as investors waited for clarity. They had surged to their highest levels since March earlier this week.
The euro fell 0.7% at $1.1637 to the lowest in more than three months while sterling tumbled 1%
The dollar was marginally higher in narrow ranges against most currencies on Tuesday as renewed concerns about diplomatic tension between the United States and China and rising coronavirus cases put a dent in risk appetite.
The U.S. dollar fell against most currencies on Thursday as a rally in riskier assets such as global equities and commodities put a dent in safe-haven demand for the U.S. currency.
Following a Monday slide, the greenback was steady on most majors and clung on near a two-week low against a basket of currencies , tracking the mood in equity markets.
Saudi Aramco on Thursday announced its first global investment in liquefied natural gas, part of a broader bid by the energy giant to expand beyond oil.
Mariam Bint Mohammed Almheiri, UAE Minister of Climate Change and Environment, called upon UAE businesses to mainstream sustainability into all their operations
Dubai property market is witnessing a remarkable growth and developers are announcing new projects to meet the rising demand in the market.