Dollar Holds Gains on U.S. Election Caution, COVID19 Cases

The U.S. dollar held steady on Monday as investors readied for this weeks U.S. presidential election, while a surge in global coronavirus cases continued to weigh on sentiment.

The greenback held onto its gains after posting its largest weekly percentage rise since late September in the previous trading session.

Investors are sticking to the safeharbour currency as Tuesdays presidential election keeps financial markets on edge.

Democratic challenger Joe Biden leads in national opinion polls though the race is seen as close in enough battleground states that President Donald Trump could achieve the 270 votes needed to win in the statebystate Electoral College that determines the overall victor.

Currency volatility can extend well beyond Election Day because there is a high risk the losing candidate will dispute the election results. The 2000 election took around one month to resolve the disputes, analysts at Commonwealth Bank of Australia said in a client note.

The dollar index, which tracks the greenback against a basket of major currencies, last sat at 94.058, near its fourweek high.

Meanwhile, the novel coronavirus continues to ravage alreadybattered economies. Europes new COVID19 cases have doubled in five weeks, a Reuters tally showed, with total infections surpassing 10 million.

The euro steadied in early Asian trade but was close to hitting longterm lows against the greenback and Japanese yen.

It last fetched 1.1647, a fraction away from a fourweek low of…

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