Potential Democratic Sweep in Midterms Could Weigh on Dollar -- Market Talk

0838 GMT - The prospect of a Democratic sweep in Tuesday's U.S. midterm elections could put some pressure on the dollar, ING's Francesco Pesole says in a note. "Fears of tougher regulation could weigh on AI stocks (we've recently seen how that can hit the dollar), while markets could price in greater risks of decision-making gridlock around issues such as government funding and the debt ceiling." However, that's unlikely to be enough to trigger a structural directional shift in the dollar, he says. The dollar continues to respond to Federal Reserve interest-rate expectations which shouldn't face an immediate and direct impact from the midterms, he says. The DXY dollar index falls 0.1% to 101.699. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

November 03, 2026 03:38 ET (08:38 GMT)