Dollar Posts Longest Losing Streak Since July on Election Angst

03-Nov (Bloomberg) — The dollar weakened for a fifth day, its longest stretch of losses in four months, and a gauge of currency volatility rose to near the highest in two months amid mounting anxiety over the outcome of the U.S. presidential election.

A JPMorgan Chase & Co. index of global currency swings rose to 10.39 Wednesday, the highest level since Sept. 14, as the race for the White House between Democratic nominee Hillary Clinton and Republican candidate Donald Trump tightened less than a week before Americans head to the polls. The greenback fell Thursday against the British pound, which surged the most since August after a U.K. court ruled the government must hold a vote in Parliament before starting the two-year countdown to Brexit.

“Politics is clearly asserting itself as the biggest driver in global markets,” said Alan Ruskin, global co-head of foreign-exchange research in New York at Deutsche Bank AG. Traders are either “selling the dollar or taking back long dollar exposure. It’s extraordinary how much the narrative has shifted.”

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PG View: But, but U.S. interest rates are surely going higher before the end of the year . . . aren’t they?