Global Financial Markets on Edge Amid Currency Shifts and Political Uncertainty

The week began with caution in financial markets, spotlighting currency shifts ahead of the U.S. presidential election and multiple central bank meetings. The dollar weakened, amid increasing prospects of a Democratic win, while expectations of rate adjustments by major banks added to the financial anticipation.

Financial markets kicked off the week with caution, as currency volatility dominated headlines on Monday. This comes in anticipation of a busy week, featuring the U.S. presidential elections and key global monetary policy announcements from the Federal Reserve and other major central banks.

In Asia, trading was subdued with Japan observing a holiday. However, currencies saw significant movements, with the U.S. dollar declining against major foreign currencies, such as the yen and the euro. This shift is partly attributed to recent opinion polls showing a potential lead for Democratic candidate Kamala Harris.

Market analysts are closely monitoring these developments, as policy decisions could impact inflation and bond yields. Meanwhile, China's National People's Congress is also in focus, discussing economic stimulus measures, potentially introducing over 10 trillion yuan in extra debt to bolster the country's economy.

(With inputs from agencies.)