Dollar index steady at 103.9 as Fed rate cut looms

The dollar index hovered around 103.9 on Tuesday, maintaining losses from the previous session as uncertainty surrounding the U.S. presidential election prompted traders to unwind some of their “Trump trade” positions.

Dollar index steady at 103.9 as Fed rate cut looms

Recent polls indicate a tighter race between Kamala Harris and Donald Trump than previously expected. Market attention is also on which party will control Congress, as a sweep could lead to significant shifts in spending and tax policies.

Fed poised for 25-basis-point rate cut amid economic concerns

On the monetary policy front, the Federal Reserve is widely expected to announce a cautious 25-basis-point rate cut on Thursday, balancing persistent inflation with a slowing labor market. Additionally, markets are considering the potential for another quarter-point cut in December.