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Donald Trump has overtaken Hillary Clinton as favourite to become the next US President, according to the New York Times projection.

A close race in the crucial battleground state of Florida shows Trump is very much a contender, with the Sunshine State's 29 electoral college votes leaning toward the Republican.

Hillary Clinton's chances of winning stood at better than 80% according to the New York Times as polls started closing at midnight, only to be overtaken by Trump at around 2.30am as his strength in Texas, North Carolina and Florida emerged.

Hillary's odds also slipped with bookies, and the peso plunged against the dollar.

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Elsewhere there was nervousness in the international markets and a fall in the value of the dollar. The dollar tumbled more than two percent versus the yen at one point.

Contests in key battleground states were too close to call, severely denting Clinton's hopes of becoming the first female president in US history.

In a message which appeared to betray the nervousness in the Clinton camp, the Democratic nominee thanked her supporters "whatever happens tonight".

(Image: PA)

Florida, which has 29 votes in the electoral college which decides who becomes the next president, would represent a major prize for either camp as they seek to reach the victory target of 270.

The race was also close in other key battlegrounds including Ohio and North Carolina as one of the most bitter and divisive contests in modern US electoral history reached its climax.

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Ohio was won by Barack Obama for the Democrats in 2012, but Republican nominee Mr Trump's campaign has targeted the bellwether state, which has voted for the eventual occupant of the White House in every election since 1960.

Florida voted Democrat in 2012 and Mrs Clinton's hopes may hinge on a high turnout among Latino voters opposed to Mr Trump, who has courted controversy in the campaign with outspoken attacks on Mexican immigrants.

The dollar tumbled and Asian shares shed early gains as Mr Trump powered ahead with some impressive early results.