There are growing concerns about the potential for violence related to the upcoming U.S. election. This is seen as a risk for investors who have relied on the country's strong institutions for economic stability.

The U.S. dollar has historically played a key role in keeping borrowing costs low and stabilizing commodity prices. It has also given the U.S. significant geopolitical leverage by excluding rivals from the global financial system. Both the Federal Reserve Chair and the Treasury Secretary, as well as their predecessors, have emphasized that the strength of the dollar is supported by the rule of law and strong institutions that go beyond individual political figures.

However, the implications of a contested presidential race could challenge these foundational elements, raising concerns about the future stability of the dollar and the broader economy.