SINGAPORE/HONG KONG- The US dollar steadied in Asia on Wednesday as traders looked to the outcome of a Senate election in Georgia to drive the next move in market sentiment.
The dollar had dropped through a major support level against the Japanese yen on Tuesday and it briefly fell to a fresh 10-month low of 102.60 yen on Wednesday before steadying.
The euro also rose past major resistance at $1.2310 to as high as $1.2328 in early Asia trade, its strongest since April 2018, before slipping back to $1.2281 as traders watched close early results from Georgia flow in.
The Australian and New Zealand dollars hung on to hefty gains to trade near multi-year highs, with the Aussie a touch softer at $0.7745 and the kiwi touching a new 32-month top before easing back to $0.7240.
Sterling was slightly softer at $1.3607.
The outcome of the runoff vote to elect two senators in Georgia will determine control of the US Senate, although a final result is not expected before Wednesday morning in the United States – perhaps longer if it is close.
If they win both spots, Democrats will take control of the Senate and would be able to pass their legislative agenda, which could include higher taxes and more stimulus.