TOKYO (Reuters) – The dollar edged down in Asian trade on Wednesday as investors counted down to the first U.S. presidential debate between President Donald Trump and Democratic challenger Joe Biden.
The 90-minute presidential debate at 0100 GMT will be closely tracked by financial markets with some political analysts seeing it as Trump’s best chance to get on top of a race he has consistently lagged in opinion polls.
“There is no consensus in the market on how either candidate’s victory will move the dollar,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.
“If, for example, the debate turns out to be a perceived victory by Trump, it’s going to be interesting to see how the markets move– particularly the dollar, U.S. stocks futures and 10-year Treasury yields,” he said.
The dollar index against a basket of currencies fell 0.32% to 93.858 <=USD>, after hitting a two-month high last week.
Also weighing on the greenback were month- and quarter-end currency flows, while better-than-expected U.S. economic data also dented its perceived safe-haven bid.
U.S. consumer confidence rebounded more than expected in September as households’ views of the labour market improved.
was steady at $1.1742, having hit a one-week high of $1.1746 overnight. Against the yen, the single currency changed hands at 124.04 yen, hovering near a two-week high of 124.11 yen
The dollar was little changed against the Swiss franc at 0.9195 franc, after falling as low as 0.9191 franc overnight
Against the yen, the greenback weakened slightly to 105.67 yen
, a fraction below a two-week high of 105.74 it marked overnight.
Markets also remain focussed on progress made around a U.S. fiscal stimulus packaged to cushion the coronavirus blow.
U.S. House Speaker Nancy Pelosi said on Tuesday she hoped to