Market Watch: Dollar Dips Amid Poll Surprises

The dollar fell in early Monday trading following a surprising Iowa poll showing Democratic contender Kamala Harris leading Donald Trump. This shake-up influenced currency movements and global market expectations, amid anticipation of Federal Reserve and Bank of England rate cuts. Oil prices also saw a boost due to OPEC+ decisions.

In early Monday trading, the dollar experienced a decline following a surprising Iowa poll. This poll showed Democratic contender Kamala Harris leading Republican Donald Trump, influencing currency movements globally. The dollar dropped 0.9% against the yen and 0.6% against the euro, while the Australian dollar saw a 0.8% increase.

Analysts suggest Trump's policies could put upward pressure on the U.S. dollar and yields compared to a potential Harris victory. The Des Moines Register/Mediacom Iowa Poll indicated Harris leading Trump by 3 points, marking a significant shift just weeks before. This poll is seen as a bellwether for swing states, placing Harris ahead as per recent trends.

Markets are preparing for potential Federal Reserve and Bank of England rate cuts. Futures suggest a 98% chance of a Federal Reserve rate cut by 25 basis points. Additionally, oil prices climbed by 1.4% after OPEC+ announced a one-month delay to its planned December output hike, reflecting concerns about global demand.

(With inputs from agencies.)