TOKYO, July 22 — The dollar eased today in the initial reaction to US President Joe Biden’s decision to end his re-election campaign, clearing the way for another Democrat to challenge Donald Trump.
China’s yuan was largely unfazed by the central bank’s decision to cut a key interest rate.
The US currency slipped 0.08 per cent to ¥157.38 (RM4.70) early in the Asian day, while the euro gained 0.11 per cent to US$1.0895(RM5.10).
Biden announced he was exiting the race today and endorsed Vice President Kamala Harris to replace him as the Democratic candidate in the November election.
Former President Trump, the Republican nominee, sits well ahead in betting markets following Biden’s disastrous debate performance last month and a surge in questions about his mental competence.
Commonwealth Bank of Australia strategist Joseph Capurso warned it was too early to read too much in the dollar’s reaction.
“The bottom line is what the polls show this week,” Capurso said, explaining that a decline in odds for a Trump win should see the dollar weaken, and vice versa.
“Harris might be a stronger candidate, but is it enough to turn the polls?”
The British pound gained 0.15 per cent to US$1.2931.
The Australian dollar added 0.08 per cent to US$0.6691.
Meanwhile, the dollar was steady at 7.2881 yuan in offshore trading after the People’s Bank of China cut the seven-day reverse repo rate to 1.7 per cent from 1.8 per cent, saying the move would improve open market operations and support the real economy. — Reuters
