Dollar Rises to Eight-Week High Versus Euro before U.S. Election

The dollar rose to an eight-week high versus the euro before U.S. voters head to the polls on 6 November to decide whether President Barack Obama or challenger Mitt Romney will guide the world’s biggest economy for the next four years.

The U.S. currency held a three-day gain versus the 17-nation currency on speculation whoever wins the election will press ahead with resolving the so-called fiscal cliff of federal spending cuts and tax increases. Australia’s dollar appreciated against all its major peers after the central bank unexpectedly refrained from cutting interest rates today.

The dollar was little changed at $1.2794 after advancing to $1.2764, the strongest since Sept. 11. The U.S. currency fell 0.1 percent to 80.24 yen. The yen was little changed at 102.70 per euro.

The Dollar Index (DXY), which Intercontinental Exchange Inc. uses to track the U.S. currency against those of six major trading partners, declined 0.1 percent to 80.688.

Australia’s dollar advanced 0.7 percent to $1.0439 after rising to $1.0442, the strongest since Sept. 28.