Market Jitters as U.S. Election Looms and Dollar Slides

The dollar weakened as financial markets brace for the U.S. election's impact on the global economy. Investors anticipate potential rate cuts by the Federal Reserve. Democratic candidate Kamala Harris leads over Donald Trump in crucial Iowa polls, influencing market predictions on the dollar's trajectory.

In Asia on Monday, the dollar experienced a downturn as investors prepared for potential shifts in the global economy depending on the United States' election result. The euro advanced by 0.6% against the dollar, while the dollar eased 0.9% against the yen.

Treasury futures made a partial recovery after prior losses, buoyed by opinion polls showing Democratic candidate Kamala Harris gaining a lead in Iowa. This development hints at significant market movements, with currency dealers pointing to her unexpected rise in popularity among female voters.

The Federal Reserve's possible decision to lower interest rates adds further uncertainty. Analysts are also considering the implications of both a Trump or Harris win, with market expectations shaping the potential for shifts in the dollar's value.

(With inputs from agencies.)