The dollar and other major currencies remained in a tight range on Monday as investors focused on the upcoming US midterm elections, which could reshape Congress and influence federal spending. The euro hovered near a 17-month low at $1.1159 in early Asian trade, pressured by Fitch’s downgrade of France’s outlook to 'negative.' The British pound was steady at $1.3387, while the dollar index held at 101.94.
Americans are set to vote on Tuesday, with Democrats expected to regain control of the House of Representatives, though the Senate outcome remains uncertain. Analysts warn that polling data, which suggests strong anti-incumbent sentiment, may not accurately predict the results, citing recent elections in Brazil and Israel as examples. A Democratic sweep could complicate plans for data centers and AI infrastructure, while debates over raising the US debt ceiling may intensify.
In cryptocurrencies, Bitcoin and Ether recovered slightly after last week’s $6.3 billion heist at Binance, the world’s largest exchange. The FBI has linked the hackers to North Korea. Binance customers withdrew $3.64 billion over the weekend, but the exchange reported stabilizing outflows and substantial deposit volumes. Binance has covered 95% of the stolen assets, though concerns remain about the security of digital finance.
Elsewhere, the Japanese yen weakened slightly to 157.78 per dollar, while the Australian dollar held steady at $0.7033 ahead of a widely expected rate hike by the Reserve Bank of Australia. The New Zealand dollar fell 0.11% to $0.5625 after its central bank surprised markets by keeping rates unchanged last week.