The U.S. dollar declined on Wednesday, reaching its lowest level of the year against the Japanese yen following a major U.S. presidential debate. The USD/JPY pair dropped by 0.72%, while the EUR/USD pair rose by 0.25% against the dollar. The yen’s strength was also supported by comments from Bank of Japan board member Junko Nakagawa, who indicated that the central bank is ready to raise interest rates if economic growth and inflation align with its expectations.
Bitcoin also saw a decrease of 0.7%, with the leading cryptocurrency trading at $56,537.00. U.S. futures were also in the red, with the benchmark S&P 500 Futures falling by 15 points or 0.27%.
During the only scheduled debate of the U.S. presidential campaign, Democratic candidate Kamala Harris was seen as outperforming Republican candidate Donald Trump. The debate featured heated discussions on multiple issues, including political differences and personal attacks, which seemed to have impacted investor confidence.
As the election approaches, the debate has increased expectations for a close race. Donald Trump’s chances of winning the 2024 election dropped to a tie on the Polymarket platform.
Citi experts commented: “We are looking forward to poll results in the coming days to confirm whether undecided voters are leaning towards Harris.” They added: “This race remains tight for now, and Tuesday’s market response may suggest that investors are beginning to refocus on election risks, though Federal Reserve policy and the U.S. economic outlook remain the primary concerns.”
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