Dollar Falls as Democrats Gain Control of Congress

The dollar weakened and U.S. Treasury yields fell on Wednesday as election results showed Democrats gaining control of Congress, prompting investors to reassess the outlook for U.S. policy and growth. The moves also lifted the forint against the dollar, though analysts said any benefit to Hungary’s borrowing costs and currency could be limited or temporary. The dollar index was reported at 101.4 after falling 0.3% during Wednesday trading. A separate market report put its Wednesday close at 101.4290, down 0.43% from the previous session. The euro and yen also strengthened against the dollar. U.S. Treasury yields declined, while global stock markets recovered after an initial selloff. In Hungary, the forint briefly traded below HUF 363 per euro on Wednesday afternoon, a level last seen on October 19, according to local market reporting. It strengthened to about HUF 322 per dollar from roughly HUF 324 earlier in the day. The yield on 10-year U.S. Treasury bonds fell by about five basis points to 4.91%, while the yield on 10-year German bonds declined three basis points to 3.3%. Investors and analysts attributed the market reaction in part to the prospect of a...