U.S. dollar may be headed lower post-election and even lower if Biden wins, traders say

A man talks on his mobile phone in front of a currency exchange bureau showing images of the U.S. dollar in Cairo, Egypt, December 17, 2019.
Amr Abdallah Dals | Reuters

The U.S. dollar slumped Tuesday and was weaker against a range of developed and emerging market currencies, a pattern that would likely persist if former Vice President Joe Biden is elected president.

The dollar index was down about 0.6%. The greenback was weaker against the euro and yen and also against emerging market currencies, like the Mexican peso. The dollar also fell against the Canadian dollar and Australian and New Zealand dollars.

"That's the real question, whether today is a one-day wonder, or we get follow-through. My guess is we get follow-through," said Marc Chandler, chief market strategist at Bannockburn Global Forex.