As markets await Georgia election results, investors are seen with the U.S. dollar falling to its latest low since April 2018 at 89.34 at the opening of the Asian session trading today.
The giant currency had previously declined significantly following China's move to increase its yuan exchange rate to its highest margin since 2005, when it was no longer based on the US dollar.
This is exacerbated by the expectation that Democrats will dominate the United States Senate through the ongoing Georgia elections. So far, Democrats are reportedly ahead of the polls.
However, uncertainty over election results has kept investors cautious in positioning and this prompted the greenback dollar to return to positive trading.
The euro has again weakened after jumping to its latest high of 2 and a half years following the collapse of the US dollar at the start of the Asian trading session.
If the Democrats win, it will further boost President Joe Biden's support from the Senate and expectations of greater impetus by the new leadership. This in turn will encourage weakness for the US dollar.
In addition, the publication of the minutes report of the FOMC policy meeting early Thursday morning will be the main focus of the market to scrutinize further clarification on Federal Reserve (Fed) policy policies at the last 2020 meeting.
