FOREX-Dollar gains as big fiscal spending bets unwound

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Adds details, updates prices; previous LONDON)
By Karen Brettell
NEW YORK, Nov 4 (Reuters) - The U.S. dollar gained on
Wednesday after Democrats looked unlikely to take control of the
U.S. Senate as a result of Tuesday's U.S. presidential election,
leading investors to unwind bets that a large fiscal package is
likely.
President Donald Trump and Democratic challenger Joe Biden
on Wednesday each faced narrow paths to potential victory in a
close-fought presidential election that will be determined by a
razor-thin margin. A so-called “blue wave” of votes for Democrats did not
emerge as many had expected, making it likely that Republicans
will maintain control of the U.S. Senate, and oppose any massive
increase in stimulus spending.
“What's tough is you can't even say for sure what the
results are going to be, but a split Congress is likely,” said
Edward Moya, senior market analyst at OANDA in New York.
“The likelihood of this outcome is that it's just going to
really provide more reason for the Fed to do more ... you're
probably going to see that the dollar decline will still take
place, it just won't be as accelerated as with what would have
happened with a blue wave,” Moya said.
The dollar index =USD rose 0.62% to 93.708, after reaching
a one-month high of 93.41 earlier.
The euro EUR= fell 0.26% to $1.1681 and the greenback
gained 0.03% against the Japanese yen to 104.49 yen.
Riskier currencies including the Australian dollar AUD=
underperformed, with the Aussie last down 0.46% at $0.7127.
Despite uncertainty over the U.S. election result, risk
appetite remained solid with stocks rising, which likely limited
the strength of Wednesday's dollar rally.
"We have not so far seen big risk-off moves so I would think
that probably that's the template for how things will evolve
here," said Jonathan Davies, head of currency strategy at UBS.
"So even if we're getting more indications that it's going
to be drawn out, the experience so far is not suggesting that
we're going to see huge FX volatility and huge dollar strength,"
he added.
Overnight volatility gauges for euro-dollar and dollar-yen
fell, after hitting their highest levels since March earlier
this week EURONO= , JPYONO= .

========================================================
Currency bid prices at 9:41AM (1441 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1681 $1.1711 -0.26% +4.20% +1.1768 +1.1605
Dollar/Yen JPY= 104.4900 104.4600 +0.03% -4.01% +105.3400 +104.1600
Euro/Yen EURJPY= 122.08 122.46 -0.31% +0.11% +123.0700 +121.9800
Dollar/Swiss CHF= 0.9130 0.9117 +0.14% -5.66% +0.9198 +0.9093
Sterling/Dollar GBP= 1.2959 1.3058 -0.76% -2.26% +1.3139 +1.2916
Dollar/Canadian CAD= 1.3196 1.3130 +0.50% +1.62% +1.3299 +1.3095
Australian/Doll AUD= 0.7127 0.7160 -0.46% +1.51% +0.7221 +0.7050
ar
Euro/Swiss EURCHF= 1.0671 1.0687 -0.15% -1.67% +1.0714 +1.0662
Euro/Sterling EURGBP= 0.9016 0.8970 +0.51% +6.60% +0.9032 +0.8947
NZ NZD= 0.6648 0.6698 -0.75% -1.31% +0.6742 +0.6617
Dollar/Dollar
Dollar/Norway NOK= 9.3962 9.3625 +0.36% +7.04% +9.5928 +9.3283
Euro/Norway EURNOK= 10.9783 10.9950 -0.15% +11.59% +11.1420 +10.9362
Dollar/Sweden SEK= 8.8311 8.8210 -0.29% -5.52% +8.9466 +8.7896
Euro/Sweden EURSEK= 10.3173 10.3472 -0.29% -1.45% +10.3885 +10.3168