Dollar Gains Ahead of Election

The US dollar gained against some riskier currencies, including the euro and the Great Britain pound, but fell against the Japanese yen. Debt woes still plague European countries and uncertainty ahead of the US presidential election makes traders hoard safer assets, including the greenback.

Whatever happens after today’s election in the United States, investors preferred to keep safer assets before the outcome will be known. That increased the appeal of the dollar, though the yen managed to outperform the greenback in the role of a safe currency. The services Purchasing Managers’ Index fell from 55.1 to 54.2 in October, not helping risk sentiment either.

In Europe, Greece continues to spoil everyone’s mood. The country has a risk of running out of money this month and it desperately needs aid. Yet it was unable to convince other members of the European Union to give another tranche of a bailout. At the same time, the Greek government struggles against citizens and political parties that oppose austerity measures needed to get help for the EU.

EUR/USD was down from 1.2795 to 1.2786 as of 1:48 GMT today, reaching the lowest settlement since September 11. GBP/USD fell from 1.6008 to 1.5977 yesterday and stayed near that level today. USD/JPY declined from 80.27 to 80.19.

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