On Wednesday, the U.S. dollar hit its lowest point of the year against the Japanese yen after a pivotal U.S. presidential debate. The debate heightened market volatility, causing shifts in key assets.

At 02:36 ET (06:36 GMT), the USD/JPY pair fell by 0.72%, while the EUR/USD gained 0.25% against the dollar. The yen’s strength was also boosted by comments from Bank of Japan board member Junko Nakagawa, who reiterated the bank’s readiness to raise interest rates if economic conditions align with their targets for growth and inflation.

Bitcoin (BitfinexUSD) also faced losses, falling 0.7% and trading at $56,537.00 around the same time. Meanwhile, U.S. stock futures slipped, with S&P 500 futures down 15 points, or 0.27%.

In the debate, Democratic nominee Kamala Harris was widely seen as having outperformed Republican candidate Donald Trump. The two clashed over a range of topics, including policy differences and personal criticisms, influencing investor sentiment.

With the U.S. presidential election fast approaching, this debate has intensified expectations of a closely contested race. Betting odds shifted following the September 10 event, with the Polymarket platform showing a tie in Trump’s chances of securing victory in 2024.

Citi strategists noted, “We await poll results to see if undecided voters are gravitating toward Harris. The close race could keep election risks in focus for investors, though Fed policy and the U.S. economic outlook remain primary concerns.”

Despite these concerns, the strategists suggested that investor sentiment could shift towards a stronger USD as the election nears, especially if Trump’s chances improve.

In a surprising turn, pop superstar Taylor Swift endorsed Vice President Kamala Harris for the 2024 presidential election. In an Instagram post made shortly after the debate, Swift described Harris as a “warrior,” stating, “I believe we can achieve so much more with calm leadership rather than chaos.”