The dollar stalled on Wednesday near a six-week low against the euro as traders waited for the outcome of a tightly fought battle for the U.S. Senate after the Democrats gained power in the House of Representatives. President George W. Bush's Republicans ceded control of the House to the Democrats for the first time in over a decade, according to TV projections in the U.S. midterm elections. The outcome in the Senate was still too early to call, however, with the Democrats taking key seats away from Republicans in states such as Ohio, Pennsylvania and Rhode Island. Click on [nN07421791] "The big story will be the Senate," said Ron Simpson, director of currency research at Action Economics in Tampa, Florida. "If the Republicans hold on ... I think that will be perhaps the best outcome for the dollar to rally." Analysts said the Democrats' victory in the House would likely put the brakes on Bush's legislative agenda in his final two years in office, creating gridlock on policy. Others in the market have said the vote's initial impact on the dollar could be limited as the results are unlikely to lead to a major shift in policy in the near term. Still, traders said the Aussie should hold near a six-month high, given that its yield advantage was boosted against the U.S. dollar's 5.25 percent and the yen's paltry 0.25 percent. Sterling was in sight of an 18-month high against the dollar and an eight-year peak versus the yen as investors waited to see if the Bank of England would raise rates to 5.0 percent on Thursday, as widely expected.