The US dollar fell in Asian trading today after the re-election of Barack Obama as the US president, on hopes that the federal authority will continue with the quantitative easing schemes.

The index of US dollar against a basket of major currencies fell 0.4 percent to 80.309. the index had touched a two-month high of 80.843 on Monday.

The federal policies will continue until it records a strong jobs gain and a reduction in unemployment level in the country. The earlier round of buying was worth $600 billion and its first round was about $1.7 trillion. The third round of quantitative easing began in September with $40 billion a month in mortgage-backed securities. The third package will be expanded if the jobs market does not improve significantly in the country.

Obama's has been supporting quantitative easing while Romney and many Republicans have expressed their opposition to the mechanism. Obama's tougher stance on financial regulations is also seen as a positive development for the bonds and negative for stocks in financial markets.

The Democrats are largely expected to retain their position in the Senate while the Republicans are aiming to strengthen their position in the US House of Representatives. This might continue to present a situation of policy paralysis as opponents will shoot down any major or revolutionary change.