U.S. Dollar Rises As Sentiment Fades On Fiscal Cliff Concerns
December 31 2012 - 2:44AM
RTTF2
The U.S. dollar advanced against most major opponents on Monday
as investor sentiment was weighed by the stalemate in U.S. budget
negotiations.
The U.S. Senate will reconvene later in the day in its final
attempt to reach a deal before the year-end deadline. Talks over
weekend showed little progress as law makers are divided on income
threshold for higher tax rates and taxation of large inherited
estates, among other issues.
If no agreement is reached, approximately $600 billion in
automatic tax increases and government spending cuts will take
effect from January 1 that could push the world's biggest economy
into recession.
The greenback is trading at 0.9164 against the franc, adding
0.34 percent from last week's close of 0.9133. The next upside
target level for the greenback-franc pair is seen at 0.92.
Against the European single currency, the greenback advanced
0.33 percent to 1.3178, compared to Friday's New York session close
of 1.3222. The greenback is likely to seek next resistance level at
1.31.
The greenback is trading at 86.11 against the yen, reversing
from early Asian session's 4-day low of 85.76. If the greenback
extends gain, it may break 86.5 level.
There are no major economic reports due in the European and New
York sessions.
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