Risk assets, dollar slip after key US election debate By Investing.com

The US dollar fell on Wednesday, hitting its weakest point of the year against the Japanese yen after the critical US presidential debate.

At 02:36 ET (0636 GMT), it was down 0.72 percent while gaining 0.25 percent against the greenback. The yen’s strength was further supported by comments from Bank of Japan board member Junko Nakagawa, who confirmed the central bank is prepared to raise interest rates if economic growth and inflation align with its forecasts.

() and the price posted losses, falling 0.7%. At 02:36 ET, the world’s largest digital currency was seen changing hands at $56,537.00.

U.S. futures were also trading in the red, with the benchmark down 15 points, or 0.27 percent.

During the only program of the US presidential race, Democratic nominee Kamala Harris was perceived to have outperformed Republican candidate Donald Trump. The two were engaged in a heated exchange most of the time.

The debate covered a range of topics, from policy differences to personal criticism, and appeared to be weighing on investor sentiment.

With the presidential election approaching, the debate has heightened anticipation of a closely contested race. Following the event on September 10, the betting odds showed a change, with Donald Trump’s chances of winning the 2024 election dropping to a tie at betting platform Polymarket.

“We await poll results in the coming days to confirm that undecided voters are moving toward Harris,” Citi strategists said in a note.

“This remains a close race for now, and Tuesday’s market reaction could suggest investors are starting to focus on election risks (although Fed policy and the US economic outlook remain in focus).

“As we get closer to the election – and assuming the race remains close – we expect investors to maintain some premium for a Trump victory, leading to a rally in the USD in November.”

Pop music megastar Taylor Swift said she would run for president in 2024. In an Instagram post shortly after the debate, Swift called Harris a “warrior.”

“I think (Harris) is a sure-handed, talented leader, and I think we can accomplish a lot more in this country if we are led by calm and not chaos,” Swift wrote.