⁍ Election polls are showing a widening lead for Democratic presidential candidate Joe Biden.

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⁍ Some betting markets are also reflecting the prospect of Democrats taking control of the U.S. Senate next month.

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⁍ A Democratic sweep would make larger fiscal stimulus more likely, which would weaken the U.S. currency.

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– The dollar dipped on Wednesday as investors looked ahead to a possible Democrat victory at the November 3 US presidential election, and after President Trump said that he was ready to sign off on some stimulus measures. Election polls are showing a widening lead for Democratic presidential candidate Joe Biden, while some betting markets are also reflecting the prospect of Democrats taking control of the US Senate next month, Reuters reports. “FX markets are starting to, at the margin, price in not only a Biden presidency but also a blue sweep as well,” says Mazen Issa, senior FX strategist at TD Securities in New York. Investors have been building short bets on the US dollar index on the growing likelihood of a Democrat victory, Issa says. “The market is looking at it as being reflationary.” A Democratic sweep would make larger fiscal stimulus more likely, which would weaken the US currency. Biden opened his widest lead in a month in the US presidential vote, according to a Reuters/Ipsos poll released on Sunday. The greenback also dipped after Trump said late on Tuesday that Congress should quickly extend $25 billion in new payroll assistance to US passenger airlines furloughing thousands of workers as air travel remains down sharply amid the coronavirus pandemic. It came after he abruptly ended talks with Democrats on an economic aid package, accusing House of Representatives Speaker Nancy Pelosi of not negotiating in good faith. That sent stock markets tumbling on Tuesday afternoon and boosted demand for the dollar.