The Swiss franc and Japanese yen led gains in foreign exchange markets as early US midterm election results suggested Democratic victories in both the House and Senate. The dollar suffered its worst day in a month, dropping as much as 0.4% according to Bloomberg’s dollar index. The franc climbed nearly 1%, while the yen rose 0.7% during Asian trading, reflecting investor shifts toward haven assets amid political uncertainty.
The dollar’s decline marked its sharpest fall since October 2, with risk-sensitive currencies like the Australian dollar underperforming. The yen’s strength was particularly notable, as traders sought stability in the wake of the election outcomes. The franc also benefited from its traditional role as a safe-haven currency during volatile periods.
Bloomberg’s dollar index tracked the broader weakness in the US currency, highlighting the impact of the midterm results on global markets. The shift in investor sentiment underscored the dollar’s sensitivity to political developments, even as other major currencies showed mixed reactions.