Dollar edges lower as US election outcome cheers global markets

The US dollar weakened on Thursday after Democrats secured large majorities in both chambers of Congress, easing concerns around the midterm election result and helping lift global equities. Business Recorder reported that the dollar index slipped 0.06% to 101.41, following a 0.36% drop in the previous session, while the euro rose 0.12% to $1.1241. The yen gained 0.08% to 158.25 per dollar.

Market expectations for the Federal Reserve’s December decision were little changed: pricing showed an 81.2% chance of a rate increase of at least 25 basis points, compared with 77.4% previously. The pound advanced 0.38% to $1.3462 ahead of the Bank of England’s announcement, while the yen’s advance came as Bank of Japan meeting minutes supported expectations of further rate increases. US private payrolls increased by 86,000 in October, exceeding the 69,000 forecast cited in the report.