US election results: Is Donald Trump losing against Kamala Harris? Dollar hints so

US dollar remained under pressure on Tuesday as stock markets and traders are keenly awaiting for US election 2024 results. The United States votes in a knife-edge presidential election to pick President between Republican nominee Donald Trump and Democratic candidate Kamala Harris.

A win for Republican Donald Trump is expected to boost the dollar, restoke inflation, and send Treasury yields higher owing to his pledges to slash taxes and impose tariffs on imports, as per AFP report.

Analysts see less upheaval from a win by Democratic Vice President Kamala Harris.


"A pro-tariff Trump presidency could see the dollar strengthen amid concerns higher inflation will prompt the Fed to keep interest rates higher," predicted Matt Britzman, senior equity analyst at Hargreaves Lansdown.

The dollar eased on Tuesday as traders squared positions ahead of what is expected to be a close U.S. presidential election, while options volatility soared after recent survey polls dented some market bets on a victory for Republican Donald Trump, Reuters reported.

Democrat Kamala Harris has also experienced improving odds on election gambling sites and had a slight lead on PredictIt overnight, although Polymarket continued to show Trump as favourite, as per a report on Reuters.

In recent weeks, financial markets and some betting platforms had leaned strongly in favour of a win for Trump, whose tariff and immigration policies are considered inflationary by analysts, leading to a rise in U.S. Treasury yields and gains for the dollar.

The US currency took a knock on Monday after a weekend opinion poll showed Harris with a surprise lead in Iowa, a traditional Republican stronghold. Overall, polls continue to show a tight race.

With hours to go until the first results emerge overnight, the dollar was mostly flat against a basket of currencies .

Traders were less sanguine about the outlook over the coming 24 hours and rushed to hedge against potentially huge price moves in currencies that are particularly sensitive to the outcome of the election and U.S. trade policy, such as the euro and the Mexican peso.

FAQs

Q1. When will US election 2024 results come out?
A1. US election 2024 results will come out once polling ends on Tuesday, November 5.

Q2. Who are contesting in US election 2024?
A2. Donald Trump and Kamala Harris are main candidates in the US election 2024.