US dollar's losses gather steam as stimulus hopes fade

London

THE US dollar's losses accelerated on Wednesday with an index falling half a per cent against its main rivals as the outcome of a split US Congress raised expectations that any major US fiscal policy boost to the economy is unlikely for now.

The greenback has been the surprise winner in the global currency markets this year on the back of President Donald Trump's fiscal stimulus and strong data which has forced the US Federal Reserve to signal higher interest rates. But market watchers believe the outcome of the US mid-term elections, with Democrats taking the House and Republicans keeping control of the Senate, makes any further US policy boost difficult.