US dollar slides as Democrats win Congress, AI regulation fears grow

The US dollar fell sharply after Democrats won control of both the Senate and the House in the midterm elections, raising fears that greater AI regulation could slow economic growth. The dollar hit a one-month low on Wednesday. The dollar index slid to its lowest level in a month, while the pound, euro, yen, and Swiss franc gained against the US currency. The 10-year Treasury yield fell by nearly five basis points to 4.915% as investors sought safe havens amid anticipated political gridlock. Democrats secured Senate seats in Republican strongholds including Texas, Iowa, North Carolina, and South Carolina. Gold rose 2.2% past $4,000 an ounce, while AI-related shares tumbled on expectations of stricter regulation, with SpaceX and Tesla declining in premarket trading.