The US dollar was steady in the European session as investors turned their attention to the US mid-term elections.
The expectation of the majority to win the US Congress is now on the side of the Republicans which causes anxiety for the Democratic Party led by President Joe Biden.
If Congress is dominated by Republicans, it will make it difficult for the Biden administration to make any decisions in the future.
Analysts believe it could have a positive impact on bonds and a negative impact on the US dollar if this election is won by the Republicans, which would also mean a lack of fiscal stimulus.
Meanwhile, the euro struggled to hold on to its gains, seeing the currency slide back below $1 parity at 0.99825 against the USD.
In addition, the pound also pared the gains it made earlier in the week with the market's focus now on UK economic data to be released on Friday.
Turning to Asian currency developments, the Aussie and New Zealand dollars traded little changed amid uncertainty over the issue of Covid-19 restrictions in China.
While most other major currencies began to decline, the yen held on to its gains to trade around one-week highs against the greenback.
Japan's foreign exchange reserves posted their second sharpest monthly decline on record in October as authorities spent 6.35 trillion yen to intervene to support the yen.
