Dollar Eases as Biden Ends Reelection Bid, Backing Kamala Harris

The U.S. dollar eased as President Joe Biden decided to end his reelection campaign, endorsing Kamala Harris as the Democratic candidate. Meanwhile, China's yuan remained steady despite the central bank cutting a key interest rate. The situation influenced various currencies, with the euro and British pound showing minimal gains.

The U.S. dollar eased on Monday following President Joe Biden's decision to exit the presidential race, thereby paving the way for another Democrat to challenge Donald Trump.

China's yuan remained mostly stable despite the central bank reducing a key interest rate. Early in the Asian trading day, the U.S. currency decreased by 0.08% to 157.38 yen, while the euro improved by 0.11% to $1.0895.

Biden announced his exit on Sunday and endorsed Vice President Kamala Harris to be the Democratic candidate for the upcoming November election. Trump, the Republican front-runner, currently leads in betting markets following Biden's poor debate performance and increasing questions regarding his mental acuity.

Joseph Capurso, a strategist at Commonwealth Bank of Australia, noted that it was premature to draw significant conclusions from the dollar's movement. He advised waiting for poll results later in the week, suggesting that a decrease in Trump's odds could weaken the dollar. The British pound saw a rise of 0.15% to $1.2931.

The Australian dollar marginally increased by 0.08% to $0.6691. Simultaneously, the dollar held steady at 7.2881 yuan offshore, after the People's Bank of China cut the seven-day reverse repo rate from 1.8% to 1.7%, aiming to bolster open market operations and support the real economy.

(With inputs from agencies.)