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FOREX-Dollar recovers from multi-week lows on poll showing Clinton lead

Published 04/11/2016, 02:16 am
Updated 04/11/2016, 02:20 am
© Reuters.  FOREX-Dollar recovers from multi-week lows on poll showing Clinton lead
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* New York Times/CBS poll shows Clinton in lead

* Poll helps dollar recover from multi-week lows

* Mexican peso on track for best day in over two weeks

* Brexit court decision boosts sterling to nearly four-week high (Updates prices, adds comments; changes byline, dateline; previous LONDON)

By Sam Forgione

NEW YORK, Nov 3 (Reuters) - The U.S. dollar stabilized from multi-week lows against a basket of major currencies on Thursday on reduced U.S. election fears after a poll showed U.S. Democratic presidential candidate Hillary Clinton maintained a narrow lead, while the Mexican peso rallied.

A New York Times/CBS poll of 1,333 registered voters found Clinton ahead by 3 percentage points, at the cusp of the Oct. 28-Nov. 1 survey's margin of error of plus or minus 3 percentage points. Analysts said the poll helped the dollar recover. euro was on track to post its biggest daily loss against the dollar in nearly two weeks, reversing overnight gains that sent the currency to $1.1126, its highest against the greenback since Oct. 11.

The dollar was last down just 0.14 percent against the yen at 103.15 yen after earlier falling 0.7 percent to a one-month low of 102.56 yen. The Mexican peso MXN= reversed an earlier more-than-one-month low of 19.5450 pesos per dollar to trade up 0.7 percent at 19.2187, putting it on course for its best day in more than two weeks.

A possible victory for Republican Donald Trump has been viewed as a key risk for the Mexican currency, given the candidate's promises to clamp down on immigration and rethink trade relations.

Overall, Clinton has been viewed as the candidate of the status quo, while many fear that a victory for Trump would carry global risks to trade and growth.

"You have a little bit of indication that Hillary could still win," said Kathy Lien, managing director at BK Asset Management in New York. "That's why you're seeing the dollar recover."

The dollar index .DXY , which measures the greenback against a basket of six major currencies, was down 0.09 percent on the day at 97.308. But that was an improvement from an earlier 0.3 percent drop to a more than three-week low of 97.041.

Sterling GBP=D4 rose as much as 1.5 percent to a nearly four-week high against the dollar of $1.2494 after a UK court ruled Parliament would have to approve the start of Brexit talks. Analysts said the ruling was positive for sterling since there are many lawmakers who favor no exit from the European Community or a "soft Brexit."

"There is a chance that we might not see article 50 triggered," said David Gilmore, partner at FX Analytics in Essex, Connecticut, in reference to the formal step needed to start the process of exiting the bloc.

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