Bush win prompts dollar sell-off

Investors immediately sold the US dollar on fears that the US budget and current account deficit would deteriorate further under Bush's policies, said TJ Marta, senior currency strategist at RBC Capital Markets in New York.

Other analysts ascribed the decline to expectations of a greater toleration for a weaker dollar in the US. "The main reason for the decline is the concern that the cheapest way of dealing with the record twin deficits in the US is devaluing the dollar," said Cornelius Luca