Dollar Bounces Back As Investors Wait For A Rate Hike Decision – 7 November, 2018

Traders reacted to the election results by selling the dollar causing it to briefly dip as Congress was split with Democrats winning in the House of Representatives and Republicans winning the majority in the Senate. The dollar managed to gain back some of its losses against the euro and yen as focus shifted towards the Fed’s monetary policy and signs that two more rate hikes are likely, one before the end of the year and the other by mid 2019. The dollar index traded 0.21 percent higher against six major peers at 96.19. It gained 0.1 percent against the yen to 113.61 yen, gaining roughly 1.9 percent against the yen during the last 9 trading sessions. The euro traded at $1.1429, and the pound was flat at $1.3124, gaining 3.36 against the dollar in the last six trading sessions. The Australian dollar was slightly lower at $0.7272.