The US dollar hit a three-year low on Wednesday as market players expected the Democratic party to dominate the United States (U.S.) Senate election in Georgia and indirectly boost expectations for a larger fiscal stimulus package.
On Wednesday, Democrats won the U.S. Senate (Georgia) by-election in Georgia. This victory of the Democratic party signifies that the party is getting closer to having greater control in Congress and at the same time putting President Joe Biden’s policy is easier to succeed.
Raphael Warnock, a pastor from one of the leading churches of Martin Luther King Jr., has won the Republican candidate, Kelly Loeffler. This puts him as the first black senator in the southern region.
Analysts generally think the Democratic-dominated Senate will generate more positive global economic growth and increase market appetite for more risky assets but it will drive the U.S. dollar and bond depreciation due to the U.S. budget and trade deficit. increasing.
The US dollar index, which measures the greenback against the major, recorded a decline before consolidating the 89.588 exchange rate as of 10.35 p.m.
Elsewhere, the Euro maintained its strength against the US dollar by 0.06% at 1.2302. The sterling currency depreciated 0.41% to $ 1.3569 against the US dollar.
Market players focus on election results and NFP reports.
