Republican election gains send dollar to 7-year high
Reuters: Sweeping Republican party wins in US mid-term elections pushed the dollar to a seven-year high against the yen and lifted US stock futures on Wednesday, as more soft data from China left oil at its lowest in four years.
Republicans rode a wave of voter discontent to secure control of the US Senate and strengthen their grip on the House of Representatives in a punishing blow to President Barack Obama that will limit his power in his last two years in office.
For financial markets, the likelihood that that will curb the legislative agenda, or alternatively ensure a greater incentive for comprise between the two sides, was seen as positive. Similar situations in the past have often sparked US stock market rallies.
Early futures prices pointed to a 0.3 to 0.4% gain for Wall Street when trading opens, while the dollar rose to as high as 114.59 yen, its highest level since December 2007.