The dollar's rebound may have enough momentum to ignore the impact of the US midterm elections; high interest rates and surging AI-related spending are attracting capital inflows. Investors believe that regardless of the election results, the main drivers of the strengthening of the US dollar are unlikely to change; the exchange rate market is more driven by relative economic growth, inflation, interest rates, and capital flows. A split government may provide some stability to financial markets, including the US dollar, and the Federal Reserve is expected to restart interest rate hikes or further boost the dollar.

The dollar's rebound may have enough momentum to ignore the impact of the US midterm elections; high interest rates and surging AI-related spending are attracting capital inflows. Investors believe that regardless of the election results, the main drivers of the strengthening of the US dollar are unlikely to change; the exchange rate market is more driven by relative economic growth, inflation, interest rates, and capital flows. A split government may provide some stability to financial markets, including the US dollar, and the Federal Reserve is expected to restart interest rate hikes or further boost the dollar.