Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

FOREX-Dollar rallies against yen, euro as FBI clears Clinton

Published 07/11/2016, 11:04 am
Updated 07/11/2016, 11:10 am
© Reuters.  FOREX-Dollar rallies against yen, euro as FBI clears Clinton
EUR/USD
-
USD/JPY
-
AUD/USD
-

* Dollar/yen jumps more than 1 pct, euro/dollar down 0.5 pct

* Mexican peso surges vs dollar

* FBI clears Clinton after review of newly uncovered emails

* Latest news related to US elections lifts risk appetite (Adds details, quotes)

By Shinichi Saoshiro and Wayne Cole

TOKYO/SYDNEY, Nov 7 (Reuters) - The dollar jumped early on Monday after the FBI said a review of newly discovered emails did not change the agency's conclusion that no charges were warranted in the case of Democrat Hillary Clinton's use of a private email server. have tended to see U.S. presidential contender Clinton as the status quo candidate, and news favouring her bid often boosts risk appetite.

The dollar was up 1.1 percent at 104.275 yen JPY= after surging to 104.530 in early trade. It had declined to 102.550 last week as polls showed a tightening U.S. presidential race.

The euro was down 0.5 percent to $1.1089 EUR= , knocked off a four-week peak of $1.1143 reached on Friday.

The U.S. currency also won back ground against the Swiss franc CHF= , which has served as a safe-haven along with the yen. The dollar was up 0.6 percent at $0.9739 francs after going as high as $0.9789.

"The dollar is being bought back on lessened prospects of a Trump presidency. But so far it is not active buying, as Clinton is likely to maintain a policy that prevents a strong dollar if she is elected, and as economic prospects remain unclear," said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo.

"Uncertainty regarding the elections will remain until the last minute, as a significant part of Trump's latest comeback in the polls may not be related to Clinton's e-mail probe."

News of the emails had helped Republican Donald Trump narrow Clinton's lead in some polls and unsettle markets globally. There is great uncertainty about what a Trump victory in the Nov. 8 vote might mean for economic policy, free trade and geopolitics.

The Mexican peso has acted as something of a bellwether of sentiment as Trump's proposed policies are considered to be deeply negative for the country.

The U.S. currency was down 2.2 percent at 18.59 pesos to the dollar MEX= , its weakest since Oct. 26.

Risk-sensitive currencies such as the Australian dollar also gained on the yen and euro in early trade, with the Aussie climbing 1.1 percent to 80.04 yen AUDJPY= .

The final NBC-Wall Street Journal poll released on Sunday showed Clinton holding a four-point lead over Trump. Clinton leads by a slender 1.8 points according to Real Clear Politics' polling average. (Editing by Louise Ireland & Shri Navaratnam)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.