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TOKYO - THE dollar edged higher in Asian trade on Wednesday, lifted by hopes that the next US president will draw up new measures to stem the financial crisis.
The US dollar rose to 99.76 yen in Tokyo morning trade, up from 99.69 in New York late on Tuesday.
The euro eased to US$1.2942 from US$1.2975 and to 129.09 yen from 129.36 yen.
Dealers kept a close watch on the US election results, hoping for an end to uncertainty over who will lead the world's largest economy, as Democrat Barack Obama took an early lead in the race for the White House.
'Obama is widely expected to win, but we are also watching how he will win,' said Mr Saburo Matsumoto, chief forex strategist at Sumitomo Trust Bank.
'He would bring change to the country amid an unprecedented crisis. 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.
But analysts said currencies may not react strongly to the result of the vote after months of turmoil on world markets.
'The impact of the election results on the market will be limited,' said Credit Suisse strategist Satoru Ogasawara. 'Market players are ultimately looking to see where financial markets will settle'.
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's Matsumoto said the euro would rise if the European Central Bank slashed interest rates by more than expected to tackle a regional recession.
Interest rate cuts usually make currencies less attractive to investors but analysts noted that the Australian dollar had rallied after the Reserve Bank of Australia cut rates by more than expected on Tuesday to spur growth.
If the ECB rate cut disappoints investors, the euro may fall further, said Mr Matsumoto. -- AFP
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