Dollar Falling as Democrats Advance The Run-Off Election in Georgia

The dollar fell on Wednesday as Democrats advanced in the run-off election that will determine who will control the US Senate and could pave the way for lavish spending under the administration of President-elect Joe Biden.

The euro crossed a major resistance level, reaching a 32-month high, while the US dollar reached its lowest level in several years against the Swiss franc and the Australian and New Zealand dollars. Against a basket of currencies, the US currency hit its lowest level since April.

Analysts generally believe that the Democrats’ control of the Senate will be positive for global economic growth and thus for riskier assets, but negative for bonds and the dollar as the budget deficit and trade deficit widen further.

The euro rose to more than $1 in evening trading in Asia with greater clarity of the outcome of the US Senate elections, surpassing the resistance level at more than $1.

The dollar fell yesterday from a major support level against the yen and continued to decline to its lowest level in ten months at more than 102 in early trade in Asia today.

Against a basket of currencies, the dollar fell to more than 89. The British pound rose to more than $1.