Early on Tuesday, the US dollar has soared to trade close to the highest levels in about a month as markets turn cautious in anticipation of the results of the presidential election. At the time of writing, the US dollar index DXY is trading around 93.98.

Traders are expecting a closely contested election, hesitating to take any bets on either Biden or Trump just yet. This uncertainty has fueled the safe haven appeal of the US dollar and sent investors away from riskier instruments and towards it for now.

Market volatility is expected to surge when the results are announced, which is again supporting the safety of the dollar among forex traders for now. In case Biden comes to power, as most opinion polls indicate, the US dollar is likely to weaken as he could announce an even bigger fiscal stimulus package than the one the Trump administration was proposing.

On the other hand, a victory for Trump or an inconclusive result with no clear winner could continue to support the US dollar. Meanwhile, other leading currencies are also trading cautious with all the focus turned to the greenback in the forex market.