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Forex Markets: Political Uncertainty Is the Name of the Game

HONG KONG—The U.S. dollar rose Monday after elections in Germany and New Zealand set the stage for periods of political uncertainty in both countries, which could drag on their currencies.

Chancellor Angela Merkel’s conservative alliance won Sunday’s German election, essentially guaranteeing her a fourth term as chancellor, though a strong showing for the nationalist Alternative for Germany party suggests Europe’s largest economy...

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