USD faces pressure on Tesla concerns amid Musk drug allegations

USD trading remains cautious as Tesla stock faces scrutiny following NYT reports about Elon Musk's alleged drug use, potentially impacting broader market sentiment. While no direct forex pairs are mentioned, risk-off sentiment typically benefits safe-haven currencies like USD, JPY, and CHF. However, concerns about a major US tech company could weigh on dollar strength if equity markets decline significantly. Tesla's stock movement often correlates with broader tech sector performance, which influences USD flows through equity market channels. The allegations include reported use of ketamine, Adderall, MDMA, and psychedelic mushrooms during campaign travels. Traders should monitor S&P 500 futures and NASDAQ for potential spillover effects into currency markets. Any significant Tesla stock decline could trigger risk-aversion flows, potentially strengthening JPY crosses while pressuring commodity currencies like AUD and NZD. The market awaits Tesla's response and any regulatory implications.