US dollar and oil prices tumble over election fears

Stock markets, the value of the dollar and oil prices are sliding over fears that Republican Donald Trump could make it to the White House.
While his rival Hillary Clinton was riding high in the polls, the US economy was remaining relatively stable.
However, as a result of an FBI announcement that the bureau is looking into Mrs Clinton’s emails, her lead has more than halved. Some polls even put Mr Trump ahead.
Proving that if there is one thing the economy hates, it is uncertainty, US Treasury yields are at their lowest in a week while crude oil prices are also falling.
While Mrs Clinton was still enjoying a five percentage point lead over her rival according to a poll from Reuters/Ipsos, the picture was different in recent polls, which showed 70-year-old Mr Trump ahead by one to two percentage points.
Andre Bakhos, managing director at Janlyn Capital in New Jersey said markets were reacting favourably while it looked as if Mrs Clinton was certain to secure victory because she is likely to retain the “status quo”.
However, investors are jumpy when it comes to Mr Trump because they say there is “little clarity” on what sort of impact his policies with have on trade and foreign policy, and therefore on the economy.
The US Federal Reserve is now expected to keep interest rates as they are, rather than risk further economic unrest, even though it was widely predicted they would rise by December.
The value of the dollar has now fallen against the euro, the yen, the Swiss franc and the pound as a result of uncertainly about which way the election result will go on November 8.
Gold values rallied, however. Gold is often seen as a safe bet at a time when the economy is going through periods of uncertainty and the precious metal stood at a one-month high as investors sought out a safe haven.
And, the dollar isn’t the only world currency currently struggling. The UK pound has fallen in value since the referendum result in June, when Britain voted to leave Europe.
The pound continued to slide, even though Bank of England governor Mark Carney announced he would be staying in post until 2019. There had been fears that the respected economist would leave his role for personal reasons, and head back to Canada.

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