US dollar gets boost as FBI clears Clinton

The Federal Bureau of Investigation (FBI) recently cleared the Democratic presidential candidate Hillary Clinton of all charges regarding her recent issue of having a private email server as Secretary of State.  It was reported that the FBI did not find any sort of evidence of criminality on Clinton’s new batch of emails. In conclusion, the bureau did not alter their original finding on Clinton reported last July.

During the FBI’s investigation, investors viewed the situation as a liability on Clinton’s side, which resulted in a lost in campaign momentum for the past weeks. The recent announcement made by the FBI greatly helped Clinton to regain her lead position on the polls as the U.S. presidential election approaches.

Clinton’s campaign was not the only one that benefited from FBI’s recent reports as the US dollar S&P Index rose to 1% against the yen to 105.05, while the euro declines to a 0.6% to $1.1066. As the dollar index increased further, stocks also rallied against its rivals in Monday right after reports from FBI were published. The greenback saw a boost up to 0.22% 97.283.

For the past weeks, the greenback has been experiencing declines due to the increasing chances of a Trump win on the November 8 elections. However, as Clinton was cleared of charges, investors became less wary on the uncertain market situation.

According to several surveys, a total of 44% of the voting population support Clinton, while only 40% support Trump. This gives Clinton an advantage of 4 points over the Republican bet.

The market tends to perceive the Democratic candidate as a status quo. News that would favor her always tends to improve global risk appetite. This would give an optimistic outcome for the dollar and other higher-yielding currencies against the yen, euro, and Swiss franc.

A forex strategist also mentioned that regardless of the outcome of the Congressional election, a Clinton victory could result in an increase in dollar to $1.09 per euro.

Another currency that rallied after FBI cleared Clinton of all charges was the Mexican peso. Due to Trump’s plans on immigration and foreign policy, the peso has experienced consistent declines to as much as 17% against the dollar last September, ever since the Republic candidate won the nomination. The turn of events helped the Mexican peso gain as much as 2% to 18.62 per dollar during the early trades in Europe.

Gold value, on the other hand, depleted even further as the dollar index continuously rose. The commodity was down to 0.7% at $1,295.01 an ounce which already hit a low of $1,287.86 on previous sessions.

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