[BREAKING] Dollar Holds Firm On COVID-19 Woes And U.S. Election Uncertainty

LONDON (Reuters) - The U.S. dollar clung to gains on Tuesday, but other safe-haven currencies were mostly quiet as investors sat on the sidelines ahead of next week’s U.S. election, even as worries about a second wave of COVID-19 and economic impact rose.

Illustration photo of Dollar

The usually risk-sensitive Australian and New Zealand dollars dipped only slightly overnight and were stronger in early European trading.

Sterling slipped overnight but was back above $1.30 on Tuesday at $1.3020. It was marginally lower versus the euro at 90.79 pence.

National Australia Bank senior FX strategist Rodrigo Catril said many investors did not want to take on new positions before the U.S. election.

A week out from polling day, national polls give Democrat Joe Biden a solid lead but the contest is much tighter in battleground states that could decide the outcome.

Analysts regard a Biden victory, and especially Democrat control of the Senate, as negative for the dollar since it is expected to deliver big stimulus spending that would boost investor sentiment and drive demand for riskier currencies.

Read more from the original article:https://www.reuters.com/articl...