The U.S. dollar jumped in early Asia trading Monday on news that Federal Bureau of Investigation Director James Comey said no new evidence has been found to warrant charges against Hillary Clinton in the investigation stemming from her use of a private email server while in government.
Coming on the eve of Tuesday's U.S. Presidential election, the comments prompted strong gains by the greenback against the euro and yen.
"With the email issue now put to bed at least for now, it is clearly favorable for Clinton's chances at the election," said Ray Attrill, global head of currency strategy at National Australia Bank.
Key commodity currencies and barometers of global risk, the Australian and New Zealand dollar, alsofound support on the comments
The FBI statements have emerged as polls in the U.S. show the battle for the presidency is narrowing.
The FBI investigation was viewed as a liability for the Clinton campaign, which had lost momentum in recent weeks.
A new Wall Street Journal/NBC News poll finds 44% of likely voters support Mrs. Clinton, while 40% support Mr. Trump. Some 6% support Libertarian candidate Gary Johnson and 2% support Green Party candidate Jill Stein.
Clinton's 4-point lead is less than half the 11-point edge she enjoyed in a mid-October poll.
A victory for the Democrats Tuesday is expected to be less disruptive for markets than the alternative of a GOP-Trump win, and therefore more supportive of a hike in U.S. interest rate in December.
Data Friday showed the U.S. job market strengthening. U.S. nonfarm payrolls rose slightly less than expected by 161,000 in October, but there was a net 44,000 upward revision to theprevious two-months' job gains.
Market pricing currently reflects a 78% probability of an increase in the Fed-funds rate next month, the first in a year.
At 2320 GMT, the euro had fallen sharply against the U.S. dollar and was trading at $1.1089, down from $1.1115 just before the FBI comments. The U.S. dollar had surged to ¥ 103.95, up from ¥ 103.37.
Robert Rennie, global head of currency strategy at Westpac said the FBI comments represent "incredible timing" for markets and the U.S. dollar has lifted strongly as risk appetite has recovered.
"We still are two days away from the election outcome. So there are investors who can't lower their guard," says Daiwa Securities senior FX strategist Yukio Ishizuki, adding "Mrs. Clinton could gain a great advantage from this, but many are still unsure."
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(END) Dow Jones Newswires
November 06, 201619:25 ET (00:25 GMT)
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