US results may not rescue the Dollar

Regardless of who wins the US presidential elections, analysts believe the dollar will not recover anytime soon, observes Reuters. Donald Trump and Joe Biden’s impact on the US stock market have been much talked about. Trump favours low taxes and a rising stock market, while Biden has plans to impose new taxes on high earners and investment profits. Many experts believe a Biden win could mean policies that are dollar-negative, including a robust fiscal stimulus. Meanwhile, Trump’s use of trade tariffs and emergency economic powers could also become a trend. But the uncertainty over who wins the elections increases the chances that investors may move towards the world’s most liquid assets—the dollar and US government bonds. A Reuters poll last month had shown that analysts’ median forecast was for the euro to rise to $1.21 in a year, up about 4% from current levels.