Dollar Wobbles as America Votes: Markets Brace for Midterm Shake-Up

The U.S. dollar dipped slightly on Tuesday as voters headed to the polls for the midterm elections. Currency traders are watching the results closely, waiting to see which party will control Congress. The euro gained ground against the dollar. The Japanese yen, however, eased, staying near a multi-decade low. Investors often move money into the dollar during times of uncertainty. This time, the mood is cautious. A divided government could block new spending plans, which may affect inflation and interest rates. Markets also remain focused on the Federal Reserve's next moves on interest rates. The election results could shape how aggressively the central bank acts in the coming months.