The foreign exchange markets are listening to the sounds of silence this morning, with the dollar hardly changed against most major currencies, despite last night's certification of a George W. Bush victory in Florida. The one currency that's benefited significantly against the dollar is its neighbor to the north, the Canadian dollar, which has rallied on the prospect of political certainty to the south.
The certification of Florida¿s ballot count yesterday and today¿s Canadian elections has propelled the Canadian dollar higher this morning. The Canadian currency had been "weakening dramatically," in recent weeks, according to Jamie Coleman at
, but the news of yesterday and today has already helped the currency in trading against the American dollar.
Today¿s election for Canadian Prime Minister will likely return
to office. This has the Canadian currency stronger against the U.S. dollar. The dollar lately was trading at C$1.5364. This is down just slightly from its close Friday of C$1.5384.
Otherwise, the old order holds for the world's currencies -- dollar great, euro bad, yen worse. The dollar hasn't realized any significant gains against the yen or euro as a result of a possible Bush win in the never-ending story that is this year's presidential election. Part of the reason for this is the existing strength of the dollar against those currencies; it's also because the legal battles haven't ended.
Of late, the euro traded at $0.8402, up from Friday's close at $0.8383, but the steady weakness in the euro has some analysts believing the
European Central Bank
will intervene to support the currency, as it did earlier this fall. Those interventions have had little affect, because of a continued perception that the United States is a better place to invest than the European markets. "As the U.S. economy is slowing, there'll be less of an incentive to go into the U.S. market, but it's not going to be something that happens quickly," said Tamiko Bayliss, currency strategist at
Dollar/yen lately traded at 111.14, down from Friday's 111.34 close. Japan's economy continues to stagger, and the political uncertainty in Japan, which most recently included a failed no-confidence vote against Japanese Prime Minister
, makes this U.S. recount process mild by comparison. Euro/yen lately traded at 93.40, up from 93.33 Friday.
The Japanese yen is slipping still due to a "combination of political and economic factors," Coleman said. He added that, "corporate bankruptcy continues to be a huge problem." A large Japanese retailer and a major construction company recently asked for debt forgiveness.
The Australian dollar was lately traded at $0.5195, weakening from Friday, when it closed at $0.5195.