Tags: 2020 Elections | dollar | bears | trump | election | delay | tweet

Dollar Bears Find Fresh Fuel in Trump's Election-Delay Tweet

Dollar Bears Find Fresh Fuel in Trump's Election-Delay Tweet
(2bears/Dreamstime)

Thursday, 30 July 2020 12:21 PM

Dollar bears say President Donald Trump’s tweet raising the idea of delaying the November election points to more weakness for an already beaten-down currency.

A gauge of the dollar touched session lows Thursday and approached the lowest level since May 2018 after Trump suggested that mail-in voting will be subject to fraud.

The greenback is down about 9.5% since its 2020 peak, reached in March amid the turmoil as the pandemic shuttered the global economy.

Investors have been dumping the dollar for weeks amid dwindling Treasury yields and disappointment over America’s response to the coronavirus relative to Europe. Data Thursday showed the world’s biggest economy shrank at a record 32.9% annual pace in the second quarter, even after unprecedented levels of monetary and fiscal stimulus from the Federal Reserve and the U.S. government.

“Anything that delays or potentially delays the smooth transition of power injects additional uncertainties for holding dollar assets and is clearly dollar negative,” Alan Ruskin, chief international strategist at Deutsche Bank AG, said in an email.

Under U.S. law, it would require an act of Congress to change the day of the election, slated this year for Nov. 3.

© Copyright 2020 Bloomberg News. All rights reserved.


   
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Dollar bears say President Donald Trump's tweet raising the idea of delaying the November election points to more weakness for an already beaten-down currency.
dollar, bears, trump, election, delay, tweet
192
2020-21-30
Thursday, 30 July 2020 12:21 PM
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