The dollar was down sharply 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 the majority in the Senate.

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

"Very low interest rates and an improved economic outlook with the launch of Covid-19 vaccines are pushing investors to bet against the dollar," said Hussein Sayed, an analyst at FXTM.

Low interest rates make the greenback less attractive, while vaccines boost investors' appetite for risk, leaving the safe haven dollar.

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

"A Republican victory should benefit the market, with the stock markets rising and the dollar weakening further: the financial markets would breathe a sigh of relief a little selfish by saying 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 question the very accommodative policy of the US Federal Reserve," hardman said.

For now, risk appetite still benefits the most volatile assets. Bitcoin, the first of the cryptocurrencies, reached a new all-time high of $34,792.47 on Sunday, and cost $30,790.42 on Monday at 10:10 GMT.

Monday Classes Friday Classes

--------------------------------------

10H10 GMT 22H00 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