Dollar dips with US midterm results in focus

The US dollar weakened against most major currencies on Wednesday as early results from the US midterm elections emerged, Business Recorder reported. The dollar index slipped 0.2% to 101.7, while the euro gained 0.2% to $1.1212 and the yen strengthened to 158.30 per dollar. The US 10-year Treasury yield also fell 4 basis points to 4.919%.

Investors were assessing whether Democrats could take control of both chambers of Congress, a result currency strategist Carol Kong said could weigh further on the dollar by constraining government spending. She also flagged possible escalation in the Middle East as a risk: stronger conflict could lift oil prices and support the dollar. Oil was little changed at $103.85 a barrel after falling about 1% on Tuesday, while sterling edged up ahead of the Bank of England’s Thursday policy announcement.