Dollar slumps to 2-month low, investors see more declines

INTERNATIONAL – The dollar sank to its lowest level in over two months against a basket of peer currencies on Friday, as vote counting for the contentious US election dragged on and investors predicted more losses for the currency.

Investors are betting that Democrat Joe Biden will become the next president but Republicans will retain control of the Senate, which will make it difficult for the Democrats to pass the larger fiscal spending package they have been pushing.

Biden maintains an edge over President Donald Trump, but a few important states are still counting votes and Trump is mounting legal challenges to vote counts, so there is still a high degree of uncertainty.

The dollar index fell against a basket of six major currencies to 92.274, hitting its lowest level since September2.

For the week, the dollar index was down 1.6 percent, on course for its biggest drop in almost four months.