U.S. Dollar Weakens Amid Election Uncertainty

(RTTNews) - The U.S. dollar lost ground against its most major counterparts on Tuesday, as investors awaited the results from the presidential election.

Polls show an extremely tight race between Vice President Kamala Harris and former President Donald Trump, suggesting the outcome of the presidential election may not be known by the end of the night.

The results of House and Senate races are also likely to be in focus, as the makeup of Congress could affect how much the next president can accomplish.

Traders also continue to look ahead to the Federal Reserve's monetary policy decision, which is due to be announced on Thursday.

The Fed is widely expected to lower interest rates by another 25 basis points, but traders will be looking to the accompanying statement for clues about the likelihood of future rate cuts.

On the U.S. economic front, a report released by the Commerce Department showed a substantial increase in the size of the U.S. trade deficit in the month of September, as imports surged and exports slumped.

The Commerce Department said the trade deficit widened to $84.4 billion in September from a revised $70.8 billion in August.

Economists had expected the trade deficit to jump to $84.1 billion from the $70.4 billion originally reported for the previous month.

The greenback fell to 1.0912 against the euro and 151.76 against the yen, off its early highs of 1.0872 and 152.54, respectively. The currency is seen finding support around 1.10 against the euro and 144.00 against the yen.

The greenback declined to near 2-week lows of 1.3845 against the loonie and 0.6640 against the aussie, from an early high of 1.3907 and a 4-day high of 0.6578, respectively. The next possible support for the greenback is seen around 1.36 against the loonie and 0.68 against the aussie.

The greenback edged down to 0.6011 against the kiwi, reversing from an early 4-day high of 0.5966. If the currency falls further, it is likely to test support around the 0.62 region.

The greenback touched 1.3020 against the pound, setting a 6-day low. The currency may challenge support around the 1.32 level.

In contrast, the greenback recovered against the franc and was trading at 0.8635. The currency is likely to locate resistance around the 0.92 level.