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FOREX-Dollar gains as big fiscal spending bets unwound

    * Graphic: World FX rates in 2020 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 rose 0.62% to 93.708, after reaching
a one-month high of 93.41 earlier. 
    The euro 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
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,.

    ========================================================
    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
 
    

 (Additional reporting by Elizabeth Howcroft in London; Editing
by Bernadette Baum)
  
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