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Dollar Declines Versus Yen Before Fed as U.S. Election Tightens

Posted by Chris Advincula on Nov 2, 2016 7:21:27 AM

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(Nov 2 Bloomberg) The dollar slid for a second day against the yen before the Federal Reserve announces an interest-rate decision on Wednesday and as the U.S. presidential race tightens before next week's vote.

Bloomberg Dollar Spot Index fell for a fourth day amid wagers that Fed policy makers will emphasize that the path of future interest rate increases will be gradual, even as they keep open the door to a December rate hike. An ABC News/Washington Post tracking poll showed Republican candidate Donald Trump ahead of Democrat Hillary Clinton for the first time since May, leading to gains in haven currencies such as the yen and Swiss franc, while Mexico's peso weakened.

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"It's been positioning around the election," said Peter Dragicevish, a foreign-exchange strategist at Commonwealth Bank of Australia in London. "We've seen the dollar underperform against the safe-haven currencies and the euro, given the current-account surplus in Europe, as well. There's some chance the Fed could surprise with a change in language."

Click on the link below to see the full story from Bloomberg: (by Lukanyo Mnyanda and Narayanan Somasundaram)

Dollar Declines Versus Yen Before Fed as U.S. Election Tightens

Topics: $USDJPY, EURO, US Dollar, Interest Rate, Forex, Federal Reserve monetary policy, U.S. ELECTION

 

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