Wednesday, November 7, 2012

Dollar falls after Obama victory, fiscal cliff looms

The dollar fell on Wednesday after U.S. President Barack Obama's re-election for a second term, which was seen ensuring Federal Reserve quantitative easing will be in place.

But analysts said the dollar could soon resume its uptrend trend if safe-haven flows are prompted by growing worries over the looming U.S. "fiscal cliff". The country risks policy paralysis over a sharp fiscal tightening due to start next year unless a deal is reached in Congress to avert it