As the presidential election comes to a close, the value of the U.S. dollar remains relatively stable.

• The U.S. dollar was little changed against other global currencies on Tuesday evening.
• As election results are announced, the foreign exchange market may be among the first financial sectors to respond.
• In the U.S., domestic stocks and bonds are less frequently traded during the overnight hours compared to currencies.

On Tuesday evening, as voting in the presidential election began to wind down, the U.S. dollar remained relatively stable compared to other global currencies.

Against the greenback, both the and the decreased by less than 0.1%, while the showed a slight increase.

The foreign exchange market is likely to be one of the first financial systems to respond to election results. More currencies are traded during the overnight hours in the U.S. compared to domestic stocks and bonds.

According to David Zervos, Jefferies chief market strategist, it is crucial to monitor the dollar tonight as it will be the most liquid and transparent messaging to the markets. This will enable people to put their money to work quickly.

The greenback is expected to rise if former President Donald Trump and Republicans perform well in Congress, as Trump's plans to increase tariffs against major U.S. trading partners would strengthen the dollar.

According to Paul Christopher, head of global market strategy at the Wells Fargo Investment Institute, increasing levies on trade will boost domestic business activity and decrease U.S. imports. This, in turn, will benefit more domestic-oriented small-cap companies and raise the value of the U.S. dollar in the exchange market.

In the lead-up to Election Day, the dollar has typically strengthened. Despite this, the rose more than 3% in October. However, it has recently weakened.

ING's global head of markets, Chris Turner, stated that market participants appear to be preparing for a Trump victory scenario.

"If there's not a red sweep, the biggest move in FX markets will be the dollar's downside, particularly if Kamala Harris wins the presidency, according to Turner. If Trump wins the presidency, the jury is still out on the outcome of the FX markets."

The greenback was slightly up against the euro but ticked down versus the yen and the Chinese yuan.