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Dollar sags as Biden moves closer to White House

Dollar sags as Biden moves closer to White House

For a third consecutive session, the US dollar fell against a basket of major currencies, where it has tumbled by 1.3% since the beginning of the week after the continuous count results in the US states, which showed that Democratic Party candidate Joe Biden is close to reaching the White House.

The dollar index, which measures the performance of the federal currency against a basket of six major currencies, recorded its lowest level in a week at 92.89 after opening the day's trading at the level of 93.39.

The American presidential battle is still unresolved so far, but the Democratic candidate, Joe Biden, took the lead in sorting the pivotal states of Wisconsin and Michigan in the Midwest, which may mean that he is close to reaching the presidency of the United States.

The reaction of the US dollar was largely negative with the increasing opportunities for Biden, given that the expected trade policy in his era may be more flexible than the Trump era, which pushed the currencies of countries that faced the threat of tariffs during the Trump administration to rise against the US dollar.

On the other hand, tensions continue over the announcement of the final results, as the incumbent Republican President Donald Trump attacked the counting of votes in several states by filing lawsuits and recounting the votes, which means that financial markets are forced to prepare for days or even weeks of uncertainty.

It is noteworthy that the instability in the levels of the dollar directly or indirectly affects the performance of financial instruments in the markets in general, which is reflected in the performance of stock indices that show a lack of clarity and a wait for more confirmation and stability in the markets.

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