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A Biden Election Win Is ‘Best Possible Outcome’ for Dollar

  • Greenback performs better following Democratic Wins: SEB
  • Bearish forecasters say dollar index to peak in third quarter
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For all the forecasts about dollar weakness, history shows that the greenback is poised to appreciate after November’s presidential election -- regardless of who wins.

The dollar strengthened in the 100 trading days after nine of the past 10 elections from 1980 to 2016, according to Richard Falkenhall, a senior foreign-exchange strategist at SEB AB in Stockholm. The currency performed better following Democratic wins, rising an average 4% after these votes versus about 2% when Republicans prevailed, he said, noting that the 1984 and 2008 votes were excluded from this calculation due to outsized drivers beyond the election.