How will the U.S. election impact the U.S. dollar?

In a recent post, we argued that the main way the U.S. election had been impacting international markets was through the U.S. dollar. Indeed, this continued after Election Day as well, with a significant move down in the dollar of 1.4% in the three days after the election was held. This depreciation of the dollar is a reaction to the expected outcome of a Biden Presidency combined with split party control of Congress.