Dollar slips, stocks flat ahead of neck-and-neck US election

The dollar fell and stocks struggled on Monday as investors trod carefully ahead of a US presidential election of great consequence for the global economy, with a US Federal Reserve interest rate cut also expected later in the week, Report informs via Reuters.

In the US presidential race, Democratic candidate Kamala Harris and Republican candidate Donald Trump remain virtually tied in opinion polls ahead of Tuesday's vote. It might not be clear who has won for days after voting ends.

Trump's policies on immigration, tax cuts and tariffs may put upward pressure on inflation, bond yields and the dollar, analysts believe, while Harris is seen as the continuity candidate.

The dollar index, which measures the greenback against a basket of currencies, eased 0.3% to 103.63.

The dollar slid against a host of European and Asian currencies, losing 0.6% against the euro to $1.090. It also tracked down 0.6% against the Japanese yen to 152.11 and 0.5% against China's yuan in the onshore market.

The dollar's decline may be linked to a poll that showed Harris taking a surprise 3-point lead in Iowa, thanks largely to her popularity among female voters, dealers said.

European stocks were flat in early trading, with British shares the outlier, adding 0.4%.

Wall Street was heading for slim gains, with Nasdaq futures rising 0.2% and S&P 500 futures up 0.1%.

"Tomorrow will shape the direction of the world economy and geopolitics for the next four years," Deutsche Bank analysts wrote.

They cautioned that "there remains a large degree of uncertainty around both the result, including the very tight House (of Representatives) race, and when we will know it."

US government bonds rose, with yields on 10-year Treasury notes falling 5.6 basis points to 4.30%.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6%, recovering from its fall to a five-week low on Friday.