Dollar weakness may be short-lived as Fed tightening prospects loom after midterms

The dollar's recent decline could prove temporary given the prospect of further Fed tightening after November's midterm elections if inflation remains elevated, Trade Nation says. The DXY index is testing support at 101.20-101.50. The euro and sterling have rallied on dollar weakness, while the Swiss franc gains on safe-haven demand amid AI stock volatility. UK bank stocks fell on a report of potential tax hikes in the Oct. 28 budget. India's rupee remains under pressure despite RBI measures.