The dollar remained under pressure on Tuesday amid a decline in bets on Trump, while earlier, the US currency gained on speculation that the Republican is more likely to defeat Kamala Harris.
Harris is gaining points in some polls, although they generally still show a tight race and almost equal chances for the two candidates.
Harris is also gaining momentum on gambling sites and has a slight edge on PredictIt, while Polymarket continues to show Trump as the favorite.
Trump’s policies on tariffs and immigration are seen as pro-inflationary, and they could lead to higher yields on longer-dated US Treasuries and a stronger dollar.
If the new president’s party also controls Congress, the currency market is likely to experience increased volatility after the election.
As of 10:35 a.m., the dollar index was trading down 0.06% at 103.82.
The October employment report showed that employers created far fewer jobs than economists expected, raising questions about the labor market’s instability. The recent hurricanes and strikes were partly responsible for the weak report.