TOKYO- The dollar was steady against a basket of currencies on Tuesday as traders looked out to the first US presidential debate and developments on the US stimulus bill.
The dollar index stood unchanged at 94.150, drifting away from a two-month high of 94.745 reached last week, as stock markets made solid gains partly on upbeat China data with Wall Street rebounding following last week’s selloff.
All eyes are on the first US presidential election debate between Democrat Joe Biden and Republican Donald Trump.
“If the debate puts Trump on the back foot and Biden keeps his lead, I think it could lead people to let go of their dollars,” said Daisuke Karakama, chief market economist at Mizuho Bank.
“The dollar market has been broadly bottoming out from low prices since mid-September.
The question is what would be the trend in October,” Karakama said, adding that market participants are also keeping a close watch on any stimulus package plans.
House speaker Nancy Pelosi said on Monday the Democratic lawmakers were unveiling a new $2.2 trillion coronavirus relief bill, which was a compromise measure that reduces the costs of the economic aid.
Markets are also braced for a slew of data to gauge the health of the world’s biggest economy ahead of the election, analysts say, including Tuesday’s consumer confidence, a manufacturing survey and consumer data on Thursday as well as jobs report on Friday.