DOLLAR TO TURN HUMBLE AS NEW PRESIDENT TAKES CHARGE: The US dollar which gained in the early days of COVID-19 outbreak as investors flocked to it as a safe haven has lost most of its sheen as fiscal stimulus and low interest rates took hold to support the faltering US economy. With Joe Biden set to become the 46th president of the US with or without majority in both houses of the US Congress, it is likely to further weaken the greenback. If the Democrats manage the Senate majority with the Georgia run-off, clearly they will have their way with a large fiscal stimulus. If they at fail at that, the Fed will be forced to step in with more monetary stimulus. In either case, the dollar will be punished and emerging economies with bulging dollar debt are unlikely to complain. [COMMENT BY: Babu Das Augustine, Business Editor]
AP