Greenback slips as American presidential vote looms
On Tuesday, the evergreen buck dipped, as market participants remained on the sidelines while they awaited the result of a tight American presidential race between Hillary Clinton and Donald Trump.
The US dollar index, gauging the greenback’s value six key currencies, fell 0.17% at 97.61.
The greenback was slightly lower against the common currency, with EUR/USD being worth 1.1057 and was steady against the Japanese yen, with USD/JPY trading at 104.49.
On Monday, financial markets edged up, as Clinton got a late boost in the surveys after the FBI officially confirmed that it will not bring charges over emails closely connected with her personal email server.
A victory for Clinton is supposed to be less disruptive for financial markets than Trump’s win and would strengthen the case for the Fed to increase interest rates already in December.
Market participants are currently pricing in a 76.3% probability of a rate lift at the Fed's December gathering.