Politics
Dollar’s Rate-Fueled Rally Set to Ride Out US Midterm Gridlock
Key Points
Currencies Dollar’s Rate-Fueled Rally Set to Ride Out US Midterm Gridlock The dollar’s rally may have enough momentum to shrug off the US midterm election, with high interest rates and a surge in AI-related spending drawing capital even if the vote delivers political gridlock. Investors are gearing up for the Nov. 3 vote to deliver the kind of policy paralysis that doesn’t generally favor the greenback, with polls indicating the Democrats could win control of at least one of the houses of...
Currencies
Dollar’s Rate-Fueled Rally Set to Ride Out US Midterm Gridlock
The dollar’s rally may have enough momentum to shrug off the US midterm election, with high interest rates and a surge in AI-related spending drawing capital even if the vote delivers political gridlock.
Investors are gearing up for the Nov. 3 vote to deliver the kind of policy paralysis that doesn’t generally favor the greenback, with polls indicating the Democrats could win control of at least one of the houses of Congress. Yet the Bloomberg Dollar Spot Index touched the highest level since May 2025 this month propelled by stronger than expected inflation data. For fund managers and strategists tracking the currency markets, the main drivers behind the dollar’s strength are unlikely to shift regardless of the vote.