Asian currencies strengthened against the dollar as Democratic gains in the US midterms made control of both the House and Senate appear likely. Maybank analysts said if Democrats flip the House, or control both chambers, tighter scrutiny of the AI sector could curb the AI-led rally and weigh on the dollar. They added that a near-term decline in US Treasury yields reduces the dollar’s appeal as a funding or investment destination for carry trades, adding downside pressure. USD/JPY fell 0.7% to 1

Asian currencies strengthened against the dollar as Democratic gains in the US midterms made control of both the House and Senate appear likely. Maybank analysts said if Democrats flip the House, or control both chambers, tighter scrutiny of the AI sector could curb the AI-led rally and weigh on the dollar. They added that a near-term decline in US Treasury yields reduces the dollar’s appeal as a funding or investment destination for carry trades, adding downside pressure. USD/JPY fell 0.7% to 157.61; USD/KRW fell 0.5% to 1,338.20. US Treasury yields moved lower in the Asian session; with equities declining, the move may reflect a flight to safety.