The dollar was seen firm against many currencies on Friday, but traders expect more losses due to diminished hopes for large stimulus to support the economy any time soon on the controversial U.S. presidential election.

Market participants are expecting that Democrat Joe Biden will become the next president but Republicans will retain control of the Senate, which will make it difficult for the Democrats to pass the larger fiscal spending that they have been pushing.

Although Biden maintains a lead over Trump, a few important states are still in the process of vote counting and Trump is mounting legal obstacles to vote counts leading to further uncertainty.

Expectations for less fiscal spending led to a large decline in long-term Treasury yields, combined with a rallying equities and other riskier assets, has placed consistent selling pressure on the dollar that is likely to continue.