The dollar held stable near a six-week foreign exchange low against the euro in early trading on Wednesday as investors waited for the outcome of US midterm elections.

The euro rose to $1.282 in late Tuesday trading before falling back to remain at $1.2775 through the early hours, while the dollar traded at yen 117.60.

In the US, the Democrats are on target to regain control of the house of representatives for the first time since 1994, although the Senate race remains too close to call.

"We could see some selling if the Democrats make significant gains," a trader at a Japanese bank told Reuters.

Despite the uncertainty and the potential for legislative deadlock, the financial markets have remained calm and many said that the results would have little impact on the dollar.

No significant policy changes are expected whichever party holds the legislature.