US ELECTION: Dollar Jumps Against Yen, Euro After FBI Clears Hillary Clinton
The U.S. dollar jumped in Asia 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 Hillary Clinton’s use of a private email server.
The dollar climbed about 1.1 percent against the yen to 104.30, while the euro slipped 0.7 percent to $1.1060. The U.S. currency also rose 1 percent against the Swiss franc.
Markets have tended to see U.S. presidential contender Clinton as the status quo candidate, and news favouring her bid often boosts risk appetite.
Dealers said safe-haven bonds were likely to soften on the news once trading got fully under way, while Asian stock markets might enjoy a mild relief rally.
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 presidency 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. So far, the peso was steady at 19.03 per dollar as there was little liquidity in the cross during Asian hours.
Risk-sensitive currencies such as the Australian dollar also gained on the yen and euro in early trade, with the Aussie climbing 1.2 percent to 80.11 yen.
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.