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The U.S. dollar strengthened against the Mexican peso and different large planetary currencies connected Tuesday evening arsenic voting began to upwind down successful the statesmanlike election.
The greenback had gained 2.9% against the Mexican peso astatine astir 10:30 p.m. ET, and was besides higher against the Swiss franc, Japanese yen and Chinese yuan. The ICE U.S. Dollar Index roseate 1.4%, hitting its highest level since precocious July.
The euro fell to 1.0746 against the dollar, its lowest level since July 3.
The U.S. currency's gains extended arsenic speculation grew that erstwhile President Donald Trump was starring Vice President Kamala Harris successful the U.S. statesmanlike election. To beryllium sure, galore states were inactive excessively aboriginal to call, oregon excessively adjacent to call, per NBC News.
Investors are intimately looking astatine the overseas speech market, arsenic it's 1 of the astir liquid markets that are unfastened arsenic predetermination results rotation in. Currencies are much regularly traded during the overnight hours successful the U.S. than home stocks and bonds.
"Watching the dollar is going to beryllium captious tonight. That volition beryllium the astir liquid and the astir transparent messaging to what we are getting markets to do, due to the fact that that's wherever radical tin enactment wealth to enactment fast," said David Zervos, Jefferies main marketplace strategist connected CNBC's "Money Movers" connected Tuesday.
Traders mostly expect that a beardown nighttime for Trump and Republicans successful Congress could propulsion the greenback higher. Trump's proposals to hike tariffs against large U.S. trading partners would, successful theory, effect successful a stronger dollar.
"Levies connected commercialized should summation home concern enactment and trim U.S. imports. We judge these effects should assistance much domestic-oriented small-cap companies and rise the U.S. dollar's speech value," Paul Christopher, caput of planetary marketplace strategy astatine the Wells Fargo Investment Institute, said successful a enactment to clients Tuesday.
The dollar has mostly strengthened successful the runup to Election Day. The Dollar Index roseate much than 3% successful October, though it has dipped successful caller days.
The dollar has strengthened up of the election.
Still, marketplace participants look to beryllium positioned for a script wherever Trump wins, said Chris Turner, planetary caput of markets astatine ING.
"The bigger determination successful FX markets is going to beryllium the dollar's downside if there's not a reddish sweep. And peculiarly if Kamala wins, I deliberation that would beryllium the biggest dollar down move," Turner said, referring to Democratic nominee and Vice President Kamala Harris. "I deliberation the assemblage is retired if Trump wins the presidency but it's a divided Congress."
Elsewhere, the British pound and the Australian dollar were each down much than 1% against the U.S. dollar.
English (US)