Daily Times

The US dollar steadied on Monday as investors prepared for US presidential elections on Tuesday, while a surge in global coronavirus cases continued to weigh on sentiment. The greenback held onto gains after posting its largest weekly percentage rise since late September in the previous trading session.

The pound inched lower on cornavirus worries, after British Prime Minister Boris Johnson announced over the weekend a one-month lockdown across England.

Investors are sticking to the US currency, which is often considered to be safe, as Tuesday’s 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 state-by-state 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 94.17, near its one-month high of 94.195. Meanwhile, the novel coronavirus continues to ravage already-battered economies.

England’s lockdown aimed to last until Dec. 2 could be extended as Britain struggles to contain a second wave of COVID-19, a senior cabinet member said on Sunday. The United Kingdom is grappling with more than 20,000 new coronavirus cases a day.

Against the dollar, the pound was last down 0.39% to $1.2904 , with traders also eyeing updates on Brexit trade talks. EU and British Brexit negotiators will continue talks in Brussels on Monday until around mid-week, people on both sides told Reuters.