09 Nov 2020
Following the news of Joe Biden being elected as the 45th President of the United States, the dollar fell to a 10-week low at the start of the week. Hoping that Biden as President would give a boost world commerce and that monetary policy will remain easy, investors sought after trade-exposed currencies.
CMC Markets’ chief strategist in Sydney, Michael McCarthy said, “The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”
Biden managed to pass the 270 electoral college votes to ensure him a win on Saturday. Traders have not sold their USD currency due to the ongoing coronavirus pandemic and Donald Trump’s refusal to concede the election. Further lockdowns are being considered in the U.S., as the number of infected was up.
Moreover, the British Pound reached a new high of over two months against the USD, increasing by 0.1%, to 1.1895.
On the other hand, the New Zealand dollar rose by 0.6%, to reach a 19-month high whereas the Australian dollar also saw gains with a seven-week top. The Reserve Bank of New Zealand is expected to hold rates on Wednesday.