The dollar fell sharply again on Monday against the euro and other major currencies, weakened by the very flexible monetary policy in the United States, with currency traders focusing on the elections in Georgia that will decide on a majority in the Senate.

Around 10:10 GMT (11:10 CET), the dollar lost 0.66% against the euro at 1.2296 dollars per euro. The dollar index, which compares the greenback to other major currencies, was trading at its lowest in two and a half years

“Very low interest rates and economic prospects improved by the launch of Covid-19 vaccines are pushing investors to bet against the dollar,” summarised Hussein Sayed, an analyst at FXTM.

Low interest rates make the greenback less attractive, while vaccines boost investors' appetite for risk, who are therefore abandoning the dollar, a safe haven.

But a source of uncertainty persists in the United States: on Tuesday, Georgia voters will go to the polls for a decisive double Senate election, since Democrats need to win these two elections to have a majority.

“A Republican victory should benefit the market, with stock markets rising and the dollar weakening further: financial markets would breathe a selfish sigh of relief that income taxes should not move,” said Jeffrey Halley, an analyst at Oanda.

But a Democratic victory would mean that Joe Biden's administration could more easily pass measures to support the economy in the face of the Covid-19 pandemic, notes Lee Hardman, an analyst at MUFG.

In the medium term, if the economy recovers more vigorously, “the market could call into question the very accommodative policy of the American Federal Reserve”, Mr. Hardman believes.

For now, risk appetite is still benefiting the most volatile assets. Bitcoin, the first cryptocurrency, reached a new all-time high of 34,792.47 dollars on Sunday, and cost 30.790.42 dollars on Monday at

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10:10 GMT 22:00 GMT

EUR/USD 1,2296 1,2215

EUR/JPY 126.31 126.06

EUR/CHF 1.0816 1.0823

EUR/GBP 0.8988 0.8934

USD/JPY 102.73 103.20

USD/CHF 0.8797 0.8934

GBP/USD 1.3680 1.3672