Dollar Declines as Global Markets Brace for U.S. Election Impact

The dollar weakened as investors anticipated a U.S. election outcome affecting global markets, interest rates, and bond yields. Both U.S. Treasury yields and the dollar fell, influenced by polling and predictions. Market volatility and potential policy impacts from either a Trump or Harris presidency further contributed to financial uncertainty.

The dollar slid on Monday, reflecting market anticipation of shifting economic conditions prompted by the imminent U.S. election. Investors are bracing for either a potential shift in leadership or further interest rate cuts by the Federal Reserve, which could significantly alter global bond yields.

Opinion polls show Democratic candidate Kamala Harris and Republican incumbent Donald Trump nearly tied, intensifying market turbulence. Analysts suggest Trump's policies might elevate inflation and the dollar, whereas Harris is perceived as a candidate of continuity. Surprisingly, Harris has gained traction in Iowa, especially among female voters.

According to betting platforms, Harris leads Trump slightly, indicating market speculation impacts. Analysts also predict the Federal Reserve will make standard rate cuts amid the electoral uncertainty, with other central banks potentially following different paths, affecting global currency and bond markets.

(With inputs from agencies.)