LONDON (AFP) - The dollar eased against other major currencies as dust settled from the US presidential elections with George W. Bush emerging victorious and analysts turning their attention to the economic outlook.
The euro rose to 1.2787 dollars in late European trading from 1.2741 late on Tuesday in New York.
The dollar fell to 106.19 yen against 106.02 on Tuesday.
The US currency first rose as Bush appeared to have won outright but then drifted lower as it became clear that the Democrats were not giving in just yet.
"The uncertainty with the elections first hurt the dollar," said Marios Maratheftis at Standard Chartered.
Late in the European trading session, Democratic presidential hopeful John Kerry conceded defeat to Bush after concluding he could no longer win the bitterly divisive election.
Kerry, whose campaign theme song was "No Surrender," acknowledged he could not win the crucial state of Ohio and called the president to congratulate him.
The dollar nonetheless hardly benefitted from John Kerry's concession, which squashed the chances of a drawn out legal battle like in 2000.
The dollar rally ground to a halt as economists warned a Bush victory would do little to ease worries over the US economy and big trade deficit.
"We maintain the key driver of dollar selling has been more the prospect of an economic slowdown ahead rather than uncertainty over the outcome of the election," said Bank of Tokyo-Mitsubishi analyst Derek Halpenny.
"We therefore place far more importance on the outcome of upcoming economic data than on an election victory for President Bush."
With the election now more or less out of the way, there were also concerns in the market that Japanese authorities may step in to push the yen lower against the dollar by intervening in the currency market.
In the short term, the dollar may find some comfort from a strong rise in non-farm payrolls, due out on Friday. While analysts' forecasts point to job creation just above 100,000, some sections of the market believe the figure could reach as high as 200,000.
The euro was changing hands at 1.2787 dollars from 1.2741 late on Tuesday in New York, 135.79 yen (134.92), 0.6931 pounds (0.6999) and 1.5307 Swiss francs (1.5339).
The dollar stood at 106.19 yen (106.02) and 1.1970 Swiss francs (1.2094).
The pound was at 1.8446 dollars (1.8379), 195.91 yen (195.46) and 2.2074 Swiss francs (2.2236).
On the London Bullion Market, the price of an ounce of gold dropped to 423.50 dollars against 424.20 late on Tuesday.
11/03/2004 - 18:12 GMT - AFP