Investing.com - The dollar turned higher against the other majors currencies on Wednesday, as the greenback continued to recover from sharp losses posted following news Donald Trump had been elected President of the United States.
EUR/USD retreated 0.83% to 1.0935, off a two-month peak of 1.1300 hit overnight.
The dollar initially plunged after Trump was declared the 45th U.S. President, confounding expectations for a Democratic victory.
Trump received a call from his opponent Hillary Clinton to concede the presidency, after he clinched victories in the key battleground states of Florida, North Carolina and Ohio.
A Trump victory is viewed as negative for financial markets as his policies are source of uncertainty for the U.S. economy.
Following the news, European Central Bank Governing Council member Ewald Nowotny said the ECB is ready to intervene in markets in an emergency.
The Mexican peso pared some of its earlier losses but remained on the downside, with MXN/USD losing 8.24% to 0.0050.
Elsewhere, GBP/USD gained 0.32% to 1.2424, off one-month highs of 1.2548 reached earlier.
USD/JPY slid 0.64% to 104.51, after hitting a one-month trough of 101.19, while USD/CHF climbed 0.61% to 0.9839.
Japan reiterated its readiness to intervene in currency markets on Wednesday morning. The country’s Finance Minister Taro Aso had said on Tuesday that Tokyo will need to respond to moves in the currency markets if the U.S. election results cause a sudden spike in the yen.
The Australian and New Zealand dollars remained sharply lower, with AUD/USD down 1.26% at 0.7664 and with NZD/USD tumbling 0.96% to 0.7315.
Meanwhile, USD/CAD was up 1.23% at 1.3452, just off a fresh seven-month high of 1.3525 hit earlier in the day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.55% at 98.41, the highest since October 31 and off a one-month low of 95.91 reached overnight.