Dollar strengthens as the elections seen swinging in the direction of Clinton

The dollar rose on Monday after the FBI decided that US Democratic presidential candidate Hillary Clinton no criminal prosecution, which was seen as a boost to its chances of winning Tuesday’s game with rival Republican Donald Trump will face.

The greenback gained 0.77 percent against a basket of currencies .DXY after getting hammered last week when FBI Director James Coney said the agency was looking for another large party of Clinton emails, strengthening chances of a Trump victory, a result that was seen as an opportunity to send shockwaves through the markets.

The Federal Bureau of Investigation said late Sunday he stood by his earlier finding that there were no charges against Clinton were justified for its e-mail practices. The announcement sent the dollar against the yen JPY = rising and the euro EUR =, and offered assistance to the Mexican peso MXN =.

“It’s all the elections. It is all the Coney letter,” said Joseph Trevisani, chief market strategist at Worldwide Markets in Woodcliff Lake, New Jersey, referring to the currency moves.

“Markets want continuity and essentially they like what they have priced and both point to Clinton. That’s why the markets react to something that increases the chances of Clinton from the reversal of a portion of the sell-off of the past week or so.”

Some analysts considered the election cautious after the British vote to the European Union in June took leave surprised markets and sent them in disarray.

“Brexit was a hard lesson for many, and it is still in recent memory,” Oanda said senior market analyst Craig Erlam.

Erlam could be added of the dollar damped speculation that Clinton has not yet out of the woods.

“It’s hard to know what damage did the reopening of the investigation into the chances of Clinton,” he said.

Because Trump’s stance on immigration, foreign policy and trade, the Mexican peso has taken a heavy hit, down at some point in September by as much as 17 percent against the dollar since he won the Republican nomination in July.

Encouraged by the latest decision of the FBI, the peso was as much as 2.5 percent to hit a 12-day high of 18.55 per dollar.

The dollar rose 1.3 percent to ¥ 104.50 JPY =. He refused 102.550 against the safe-haven Japanese currency last week as polls showed a tightening of the US presidential race.

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