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Dollar Rises After Election as Haven Play; Euro Declines

The Dollar Index rose to a two-month high as investors sought safety amid concern President Barack Obama will struggle to convince Congress to avert the so-called fiscal cliff after his historic re-election.

The euro fell to its weakest in two months versus the dollar before Greek Prime Minister Antonis Samaras secured support from a majority of lawmakers for austerity measures needed to unlock an international bailout. The U.S. currency declined against the yen as Obama defeated Republican challenger Mitt Romney, who disagreed with current Federal Reserve policy of monetary stimulus. U.S. stocks fell the most in a year as Obama faces the fiscal cliff, $600 billion in tax increases and spending cuts set to be implemented in 2013, which may push the U.S. back into recession.