Dollar slips as Democratic victories in US midterms stoke AI jitters
SPY•SPY•SPY•SPY•The dollar index fell to a one-month low of 101.39 after Democrats captured majorities in both chambers of Congress, as investors weighed potential tighter AI regulation and its effect on US growth. The euro rose 0.53% to $1.1251 and sterling gained 0.55% to $1.3485.
The dollar weakened on Wednesday after Democrats captured majorities in the Senate and House, raising investor concerns that opposition to data centres could gain momentum and that tighter AI regulation could weigh on economic growth. The dollar index fell to a one-month low and was last at 101.39; the euro gained 0.53% to $1.1251 and sterling rose 0.55% to $1.3485.
The dollar fell 0.17% against the yen to 158.43 per dollar and 0.44% against the Swiss franc to 0.8169. The 10-year Treasury yield dropped 1.7 basis points to 4.933%. Strategists said the election outcome could constrain future policy, while noting that passing federal legislation would remain difficult. Investors were also watching Middle East risks and the Bank of England’s expected interest-rate decision.
