The U.S. dollar weakened during Monday’s trading session (November 2, 2026), pressured by a sharp drop in global oil prices and growing investor caution ahead of the U.S. midterm elections. The U.S. Dollar Index (DXY) fell 0.14% to 101.73, while oil prices plunged by approximately 7% following talks between Iran and Qatar that raised hopes for a resolution to the conflict in the Middle East. The decline in energy costs helped alleviate inflation concerns and improved sentiment in the stock market—a welcome shift after the Nasdaq recorded its steepest monthly decline since March 2025, driven by anxieties surrounding the scale of investments in artificial intelligence (AI).
In the foreign exchange market, the euro strengthened 0.33% to US$1.1195, even though credit rating agency Fitch had previously downgraded its outlook for France from stable to negative. The British pound also rose 0.16% to US$1.3413, bolstered by UK manufacturing data showing the fastest production growth in over two years. Nevertheless, rising production costs remain a concern for the Bank of England (BoE), which faces expectations of interest rate hikes aimed at curbing inflation.
Meanwhile, the cryptocurrency market has begun to show signs of stabilization following pressure triggered by reports of a US$6.3 billion crypto-asset theft at Binance. Bitcoin fell 1.16% to US$76,840.70, while Ethereum dropped 0.31% to US$2,251.69. Binance has reportedly seen nearly US$5 billion in customer withdrawals since resuming services following the incident. This situation has heightened investor focus on the security of digital assets and liquidity risks within the crypto industry. Market attention is now focused on the U.S. midterm elections taking place on Tuesday (November 3, 2026), as voters determine the composition of Congress amid growing concerns over economic conditions and the high cost of living. The election results could potentially influence the direction of fiscal policy under President Donald Trump’s administration, as well as global market sentiment. Furthermore, investors are awaiting U.S. employment data and interest rate decisions from several central banks to gauge the economic outlook and the future trajectory of the dollar.
Source: Newsmaker.id