Dollar Slides Ahead of Election, Fed Decision
The dollar index dipped below the 104 mark on Monday, reversing gains from the previous session as investors prepared for the upcoming U.S. presidential election and the latest Federal Reserve policy announcement.
Recent market movements had driven the dollar and Treasury yields higher on speculation that Trump might reclaim the White House this month, with his proposed policies on immigration, tax cuts, and tariffs potentially fueling inflation. However, uncertainty about the election outcome prompted traders to scale back those bets this morning.
On the monetary policy front, the Fed is widely expected to cut interest rates by a modest 25 basis points this week, following an outsized half-percentage point reduction in September. Markets are also pricing in another quarter-point cut for December. The dollar weakened against a range of currencies, with the most significant selling activity observed against the kiwi, aussie, and yen.
Source : Trading Economics
