USDINR seems start trading with weaker note , we expect intraday volatility will increase. Importers and Exporters must keep quite for the day.
Investors had initially wagered that a possible Democratic sweep by Joe Biden could ease political risk while promising a huge boost to fiscal stimulus, hitting the safe-haven dollar and bonds.
Instead, investors were now hedging against the risk of a contested election or at least a drawn-out process as mail-in ballots were counted.
10-year Treasury yields drop all the way back to 0.85%, from a five-month top of 0.93%.
The U.S. dollar likewise reversed early losses and gained 0.87% on a basket of currencies to 94.24. The euro eased back to $1.1615 from a top of $1.1768.
Asian share markets turned subdued, paring early gains as results from the U.S. Presidential election showed an agonizingly close race with no clear winner yet in sight.
But the mood sobered on signs President Donald Trump might snatch Florida and was closer in other major battleground states than polls had predicted.
Investors are still awaiting the outcome of Federal Reserve and Bank of England meetings this week, which are expected to at least give a nod to further stimulus.
The Reserve Bank of Australia on Tuesday cut interest rates to near zero and boosted its bond-buying program, adding to the tidal wave of cheap money flooding the global financial system.
This surfeit of liquidity has been a boon for gold, which is tightly limited in supply. The yellow metal ran into profit taking on Wednesday and dipped to $1,902 an ounce, but stayed comfortably above last week’s trough of $1,858.
Oil prices also pared their early gains as the election outcome turned murky.
U.S. crude were up 61 cents at $38.30, with Brent crude futures gaining 18 cents to $40.29.
Commentaires