Dollar gains on euro as Obama romps to victory
The dollar rose against the euro in Asian trade on Wednesday after Democrat Barack Obama was elected US president, raising hopes of fresh action to tackle the economic slump.
The euro dropped to 1.2882 dollars in Tokyo afternoon trade, down from 1.2975 dollars in New York late Tuesday. The greenback slipped to 99.52 yen from 99.69. The euro fell to 128.25 yen from 129.36.
Obama is expected to "bring change to the country amid an unprecedented crisis," said Saburo Matsumoto, chief forex strategist at Sumitomo Trust Bank.
"Even if economic figures and sentiment remain grim, markets still have high expectations for the policies that he will iron out from January," he added.
Obama, who will be inaugurated in January, inherits an economy mired in the worst financial crisis since the 1930s.
"Now the focus is shifting to who will be appointed Treasury Secretary," said Sho Komamura, forex dealer at Hachijuni Bank.
He said markets were not necessarily welcoming Obama's win with open arms, as he will likely pursue a more expansionary fiscal policy, which could increase the US budget deficit.
"I am afraid his fiscal policy won't have a quick impact on the markets," Komamura said.
The euro and the British pound were also in focus ahead of expected interest rate cuts by the European Central Bank and the Bank of England on Thursday.
Sumitomo Trust Bank's Matsumoto said the euro would rise if the ECB slashed interest rates by more than expected to tackle a regional recession.
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