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2026-10-31 00:24:24
The dollar's interest rate-supported rally is likely to continue, unaffected by potential political gridlock in the US midterm elections. The dollar's current rebound momentum is quite strong and less affected by the elections: on the one hand, the high-interest-rate environment, and on the other hand, the significant increase in AI-related spending, are continuously attracting global capital inflows into the US market. Most investors believe that regardless of the final outcome of the midterm elections, the core drivers supporting the dollar's strength are unlikely to change. The exchange rate market is essentially determined by the relative economic growth rates, inflation levels, interest rate differentials, and capital flow directions between different economies. If a split occurs in the US government after the election, it could actually bring some stability to various financial markets, including the dollar. Furthermore, the market's widespread expectation that the Federal Reserve may resume interest rate hikes would provide further upward momentum for the dollar.
