Dollar Slips as U.S. Midterm Elections Begin; Australian Currency Falls to Two-Week Low

The U.S. dollar weakened on Tuesday as voters headed to the polls for the country's midterm elections. Investors are watching the results closely, as control of Congress could shift and affect future economic policy. The Australian dollar, often seen as a barometer of global risk appetite, dropped to a two-week low. The decline reflects caution among traders ahead of the election outcome and its potential impact on markets. Markets typically react to political uncertainty. A change in the balance of power in Washington could influence spending plans, trade policy, and regulation — all factors that shape currency values. Traders are expected to remain cautious until results become clear.