The US currency gains on speculation that Obama`s sweeping victory will help him push through policies needed to revive the world`s biggest economy The dollar and yen rose on Wednesday, as global investors booked profit in stocks after the recent rally from multi-year lows, and Democratic Senator Barack Obama scored a historic victory in the US presidential polls. The US currency also gained on speculation that Obama's sweeping victory in the US presidential election will help push through policies needed to revive the world's biggest economy. American television networks projected 349 electoral votes for Obama to 159 for Republican rival John McCain. Also, Democrats took at least five Senate seats from the Republicans. The dollar rose to US$1.2845 per euro at 7:59 a.m. in London from US$1.2981 on Tuesday, when the currency fell 2.6% in New York. It was quoted at 99.37 yen from 99.70 yen. The British pound slipped 1% to US$1.5802. The euro declined versus the yen after European Central Bank (ECB) member Juergen Stark signaled support for interest-rate cuts to bolster the region's shrinking economy. The euro fell to 127.59 yen from 129.47. The ECB will lower its main refinancing rate by a half-percentage point to 3.25% on Thursday, according to most economists. The pound fell after a report showed that Britain's construction industry contracted in October at the fastest pace in more than a decade. The Bank of England will cut its main interest rate by 50 basis points to 4% tomorrow. The election victory puts the Democrats in firm control of the US government for the first time since the early 1990s, making it easy for Obama to frame policies. Meanwhile, crude oil and gold futures both shed some of Tuesday's gains as investors locked in gains across asset classes. The dollar's advance following Obama's election victory also caused traders to sell commodities. Crude oil for December delivery declined as much as US$3.39, or 4.8%, to US$67.14 a barrel on the New York Mercantile Exchange. It was at US$67.50 a barrel at 4:21 p.m. Singapore time. Oil prices, which have tumbled 54% since reaching a record US$147.27 on July 11, are down 28% from a year ago. Oil futures rose US $6.62, or 10%, to US $70.53 a barrel yesterday, the highest settlement since Oct. 21. It was the biggest one-day gain since Sept. 22. Gold for immediate delivery fell as much as 1.6%, or US$12.10, to US$751.15 an ounce today, before trading at US$752.05 at 4:28 p.m. in Singapore. Copper declined in London as the dollar rebounded, reducing the appeal of the metal as an alternative investment, and global stockpiles rose to near a five-year high, signaling a slowdown in demand. Copper for delivery in three months on the London Metal Exchange (LME) declined as much as 4% to US$4,130.50 a metric ton and traded at US$4,145 as of 3:14 p.m. Singapore time. Copper has lost 38% this year, heading for the first annual drop since 2001. Among other LME-traded metals, aluminum fell 0.9% to US$2,091 a ton, zinc dropped 3.6% to US$1,195, lead slid 1.6% to US$1,515 a ton, nickel declined 3.1% to US$12,500 a ton and tin was 2.3% down at US$14,450 a ton.

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