* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds quotes, updates prices)
By Karen Brettell
NEW YORK, Nov 5 (Reuters) - The U.S. dollar fell to two-week
low against a basket of currencies and a seven-month low against
the Japanese yen as surging stock markets reduced demand for the
greenback, and before the Federal Reserve will conclude its
two-day meeting.
Democrat Joe Biden edged closer to victory over Republican
President Donald Trump in the U.S. presidential race as election
officials tallied votes in the handful of states that will
determine the outcome and protesters took to the streets.
But the so called "blue wave," where Democrats also take
control of the Senate in congressional elections, looked
unlikely. Wall Street's main indexes jumped as investors bet
that a Republican-held Senate would block any moves by a Biden
administration to tighten regulation and raise taxes on
corporate America. .N
“The investor class loves the idea of a Democratic president
and a Republican Senate that will return back to essentially a
steady, normal state of affairs,” said Boris Schlossberg,
managing director of FX strategy at BK Asset Management in New
York.
The dollar index fell 0.74% against a basket of currencies
=USD to 92.71.
The euro EUR= jumped 0.78% to $1.1813. The dollar dropped
0.78% against the Japanese yen JPY= to 103.67 yen, the lowest
since March 12, and breached technical support at 104 yen that
will now likely form resistance.
The yuan CNH= gained to a more than two-year high of
6.5994. The Chinese currency has been heavily affected by
Sino-U.S. disputes since the outbreak of a bilateral trade war
in 2018.
The dollar has been hurt by ultra-loose Federal Reserve
policy as the U.S. central bank aims to stimulate growth after
the economy was ravaged by business shutdowns due to COVID-19.
The U.S. central bank's policy-setting Federal Open Market
Committee is expected to stick closely to its last statement and
repeat its pledge to do whatever it can to help the economy
through the coronavirus-triggered recession when it concludes
its meeting on Thursday. U.S. Treasury yields fell from four-month highs this week as
the prospect of a large jump in stimulus on a Democrat sweep of
Congress faded, which is also expected to weigh on the dollar.
“Regardless of the election result, I think the dollar's
going to fall,” said Marc Chandler, chief market strategist at
Bannockburn Global Forex in New York.
“Typically a country with a large budget deficit, a large
current account deficit, has to offer a large interest rate
premium to suck in world savings, and because we can't, because
of the weak economy, the low inflation, I think that we can't
offer a sufficiently high interest rate premium,” Chandler said.
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Currency bid prices at 11:42AM (1642 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1813 $1.1722 +0.78% +5.38% +1.1859 +1.1712
Dollar/Yen JPY= 103.6700 104.4800 -0.78% -4.77% +104.5500 +103.6200
Euro/Yen EURJPY= 122.49 122.53 -0.03% +0.43% +123.1600 +122.2200
Dollar/Swiss CHF= 0.9054 0.9124 -0.77% -6.45% +0.9135 +0.9045
Sterling/Dollar GBP= 1.3108 1.2985 +0.95% -1.14% +1.3114 +1.2932
Dollar/Canadian CAD= 1.3047 1.3139 -0.70% +0.47% +1.3177 +1.3028
Australian/Doll AUD= 0.7264 0.7173 +1.27% +3.46% +0.7275 +0.7146
ar
Euro/Swiss EURCHF= 1.0703 1.0690 +0.12% -1.37% +1.0726 +1.0687
Euro/Sterling EURGBP= 0.9011 0.9025 -0.16% +6.59% +0.9071 +0.9007
NZ NZD= 0.6758 0.6694 +0.96% +0.33% +0.6768 +0.6680
Dollar/Dollar
Dollar/Norway NOK= 9.1842 9.3174 -1.43% +4.62% +9.3675 +9.1472
Euro/Norway EURNOK= 10.8518 10.9269 -0.69% +10.31% +10.9740 +10.8218
Dollar/Sweden SEK= 8.7108 8.7772 -0.04% -6.84% +8.8034 +8.6657
Euro/Sweden EURSEK= 10.2890 10.2928 -0.04% -1.72% +10.3180 +10.2680