The dollar was slightly down against the pound, at 0.7734 and the euro at 0.9183 but none of the loses are more than 0.15%
The US dollar slipped against several currencies after President Joe Biden said he will no longer seek re-election, leaving an uncertain path that could rattle markets.
The dollar was slightly down against the pound, at 0.7734 and the euro at 0.9183 but none of the loses are more than 0.15%. The same was in Asia, with the dollar sliding slightly against the yen.
The dollar’s reaction to Biden’s withdrawal has been subdued so far as such an announcement was not ruled out and because investors will probably want to see what impact the decision will have in fresh polls.
It looked like investors had already started to price President Joe Biden’s withdrawal from November’s race. The DXY dollar index opened in Asia today nearly 0.1% lower on the news, but quickly gained, as did US yields, according to Chris Turner, analyst at ING.
Investors will now switch their attention to how Kamala Harris fares against Donald Trump in the opinion polls – assuming she is appointed the presidential candidate at the Democratic National Convention on 19-22 August, he said.
President Joe Biden announced his withdrawal from the 2024 presidential race on Sunday, throwing his full support behind Vice President Kamala Harris as the Democratic nominee for the upcoming November election.
Commonwealth Bank of Australia strategist Joseph Capurso cautioned it was too early to read much into the dollar’s reaction.
The bottom line is what the polls show this week, Capurso said, explaining that a decline in odds for a Trump win should see the dollar weaken, and vice versa.
Harris might be a stronger candidate, but is it enough to turn the polls?, Capurso added.
Meanwhile, the dollar firmed against the yuan in offshore trading after the People’s Bank of China unexpectedly reduced the seven-day reverse repo rate to 1.7% from 1.8%, saying the move would improve open market operations and support the real economy.
