Amid indications that US President George W Bush is all set to return to the White House for a second term, oil prices, which had dropped below $50 a barrel on Monday crept back to $51 before settling at $50.89 per barrel.

The dollar too strengthened against the euro, which lost a cent to stand at $1.2696 in Singapore trade.

But analysts point out that forex dealers do not care one way or the other about who wins the presidential race, as long as there is a clear winner.

News of a possible Bush victory also cheered the Asian markets. On Wednesday Singapore stocks gained 1 per cent, Taiwan shares rose 1.8 per cent and South Korea's main index was up by 1.5 per cent. The Indian markets too rallied as Bush is seen as good for Indian software companies. Bush is generally considered pro-business, and investors felt reassured by the prospect `business as usual'. Bookmakers expect Britain's FTSE 100 stock index to open 25 points higher.

While Bush is positive news for shares and the US dollar, analysts say a Kerry victory is likely to push down oil prices as he, in his election campaign had threatened to halt the policy of filling the US strategic petroleum reserves, while the oil prices remained high. But there is no such likelihood under the Bush regime.

With Bush winning 254 against Kerry's 242, the result of the Ohio state is likely to settle the issue. While projections said Bush had won the crucial state of Ohio, Kerry's campaign refused to concede a defeat, saying the vote count had not been completed.