Dollar Slips Amid Leadership Uncertainty in the U.S.

The dollar depreciated in Asia with investors anticipating significant shifts in the global economy. The presidential race between Kamala Harris and Donald Trump includes potential rate cuts by the Federal Reserve. Market reactions are mixed, with predictions of different outcomes based on electoral results.

The U.S. dollar experienced a decline in Asia on Monday as investors prepared for crucial economic developments globally. With the U.S. presidential election underway, market participants are also contemplating another cut in interest rates, a decision that carries significant consequences for bond yields.

In currency movements, the euro appreciated by 0.4% to $1.0876, encountering resistance at $1.0905, while the dollar slid 0.3% against the yen, reaching 152.45 yen. The dollar index saw a decrease of 0.3% to 103.94. The election stands on a knife-edge, with Kamala Harris and Donald Trump tied in polls, leaving the election winner uncertain for days after voting concludes.

Markets are banking on a 25 basis point rate cut by the Federal Reserve this Thursday, amid an 83% chance of another similar reduction in December. Global central banks, including the Bank of England, navigate complex economic landscapes, with expectations of stimulus measures in China to support recovery efforts.

(With inputs from agencies.)