The U.S. dollar traded higher on Wednesday as investors digested Donald Trump's stunning victory over Hillary Clinton.
The dollar index, which measures the greenback against a basket of currencies, erased earlier losses, trading at 98.43 as of 3:35 p.m. ET. The euro fell around 0.87 percent versus the dollar, holding around $1.092.
"As I turn on the trading screens this morning the markets have seemed to calm a bit," said Chris Gaffney, president of EverBank World Markets. "Something similar occurred following the Brexit vote with large overnight spikes in some of the safe haven assets but then once investors started to digest what had occurred the markets reversed course and calmed down."
ThinkMarkets' senior market analyst Matt Simpson warned in a note that with markets having priced in a Clinton victory previously, it left the potential for "some nasty whipsaws over the next eight to 12 hours" in the event of unexpected outcomes in individual states.
"Whilst markets seem optimistic going into this, we cannot help but feel some of these moves are a little too pre-emptive," he said. "Expectations can (and usually do) lead to disappointment."
The yen fell below a previous session low of 105.46, last trading at 105.81 against the dollar as investors unwound earlier safe-haven trades.