The dollar continues to decline this Tuesday, November 5, 2024, presidential election day in UNITED STATESa vote which promises to be particularly close.
Around 10:25 a.m. GMT (11:25 a.m. in Paris), the American currency lost 0.12% against the euro, to $1.0891, and lost 0.19% to the pound, to $1.2983.
The United States decides on Tuesday whether Kamala Harris or Donald Trump will enter the White House, at the end of a campaign of incredible tension, undecided until the last minute.
As the vote approaches, the dollar weakened against “to the tightening of the polls and the narrower margin of victory for Trump on the forecasting sites” and betting platforms, notes Kathleen Brooks, analyst at XTB.
The Dollar Index, which compares the United States currency to a basket of six currencies, stood Tuesday at 103.75, down 0.50% compared to its close on Friday, before these new projections published at the price of the weekend.
The greenback had previously been buoyed by the prospect of potentially inflationary policies envisaged by the Republican candidate, while bitcoin had benefited from the former president’s pro-cryptocurrency attitude.
Polling stations open at 6:00 a.m. local time on the east coast of the United States (11:00 a.m. GMT), while 80 million ballots have already been cast early or sent by post. However, the final result could take several hours or even days to be established.
If Trump wins, the dollar could rise again “slightly stronger”believes Ms. Brooks, while “if Harris wins and Congress is divided between Republicans and Democrats”, the American currency is likely to “fall in the coming days”.
For its part, the onshore yuan, traded in mainland China, fell by barely 0.04% against the greenback, to 7.1049 yuan per dollar.
Authorities have announced measures to stimulate activity, including rate cuts and the easing of restrictions on home purchases. But many analysts have criticized the absence for the moment of a major quantified recovery plan.
Such an announcement could come on Friday, after a meeting this week of the standing committee of the National People’s Congress, the main body of Parliament effectively subservient to the ruling Chinese Communist Party (CCP).
The renminbi, the other name of the Chinese currency could therefore “in the short term”, benefit from a “new tailwind”, estimates Volkmar Baur, analyst at Commerzbank.
© WITH AFP
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