NEW YORK: The US dollar gained against a basket of currencies on Wednesday after Democrats looked unlikely to take control of the US Senate as a result of Tuesday’s US 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 US 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 dollar index rose 0.31% to 93.42, after reaching a one-month high of 94.31 in overnight trading.

The euro gained 0.08% to $1.1720, after earlier dropping to $1.1602, its lowest since July 24.

The greenback was unchanged against the Japanese yen at 104.46 yen.—Reuters