The dollar softened on Tuesday as investors shifted positions on US presidential election day after recent polls debunked some market predictions of a victory for Republican Donald Trump.

Democrat Kamala Harris also saw increased odds on election gambling sites, gaining a slight lead overnight on PredictIt, although Polymarket continued to list Trump as the favorite.

In recent weeks, financial markets and some betting platforms have been strongly trending towards a Trump win, with his tariffs and immigration policies considered by analysts to be inflationary, leading to a rise in US Treasury yields and gains in the dollar.

But the US currency fell as much as 0.76 percent against the euro, falling to its lowest level in three weeks, after a weekend poll showed Harris with a surprise lead in the traditional Republican stronghold of Iowa. Overall, polls continue to show a tight race.

The dollar index, which measures the currency against six major currencies, including the euro, fell slightly to 103.89 as of 06:18 GMT, after falling to 103.67 on Monday for the first time since October 21. It rose to its highest level last week. It has been at 104.63 since the end of July.

The euro rose to $1.0879, after rising to $1.09145 in the previous session for the first time since October 15.

Sterling was trading slightly higher at $1.2959.

Against the yen, the dollar traded at 152.34 after falling to a one-week low of 151.54 overnight.

“We think financial markets are now ready for Harris to win,” said Carol Kong, currency strategist at Commonwealth Bank of Australia.

“So the USD could decline modestly by 1-2 percent this week if Vice President Harris wins and could rise materially if (former) President Trump wins,” he said. “Any delays and/or disputes regarding vote counting could also increase currency volatility this week.”

The winner may not be known for days after Tuesday’s vote, but Trump has signaled that he will fight against any defeat, as he did in 2020.

Overnight implied volatility options for euro/dollar rose to its highest level since November 2016 on Tuesday, as did the dollar-Mexican peso pair. Mexico is among those most affected by Trump’s protectionist policies.