Reuters:
By Jessica Mortimer
(Reuters) - The dollar fell on Wednesday after U.S. President Barack Obama's re-election for a second term was seen ensuring Federal Reserve quantitative easing will stay in place.
But analysts said the dollar's uptrend could resume if safe-haven flows are prompted by growing worries over the looming U.S. "fiscal cliff".
The country risks policy paralysis over a sharp fiscal tightening due to start next year unless a deal is reached in Congress to avert it.
The end of uncertainty about the election result lifted stocks and riskier currencies, helping the higher-yielding Australian dollar rise to its highest in nearly seven weeks and the Canadian dollar to a three-week peak.
The dollar was down 0.1 percent against a basket of currencies .DXY at 80.545, not far from Monday's two-month high of 80.843.
The euro was up 0.1 percent at $1.2825, having hit a high for the day of $1.28765, with traders looking to sell the single currency at higher levels as investors took a grim view given weaker-than-expected economic data and renewed concerns about Greece and Spain.
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By Jessica Mortimer
(Reuters) - The dollar fell on Wednesday after U.S. President Barack Obama's re-election for a second term was seen ensuring Federal Reserve quantitative easing will stay in place.
But analysts said the dollar's uptrend could resume if safe-haven flows are prompted by growing worries over the looming U.S. "fiscal cliff".
The country risks policy paralysis over a sharp fiscal tightening due to start next year unless a deal is reached in Congress to avert it.
The end of uncertainty about the election result lifted stocks and riskier currencies, helping the higher-yielding Australian dollar rise to its highest in nearly seven weeks and the Canadian dollar to a three-week peak.
The dollar was down 0.1 percent against a basket of currencies .DXY at 80.545, not far from Monday's two-month high of 80.843.
The euro was up 0.1 percent at $1.2825, having hit a high for the day of $1.28765, with traders looking to sell the single currency at higher levels as investors took a grim view given weaker-than-expected economic data and renewed concerns about Greece and Spain.
MORE