Greenback cuts into losses as fiscal cliff negotiations continue

Posted On: November 29, 2012
A top Republican commenting on minimal progress to resolve the fiscal cliff threat in the U.S. prompted the world's reserve currency to advance against the common currency of the European Union on Thursday, Bloomberg reports.

The U.S. dollar climbed against competing monetary units as a consequence of the remarks by U.S. House Speaker John Boehner as the year-end deadline looms.

"Boehner is one of the major players, so his comments speak louder than comments from some other officials," currency strategist Brian Daingerfield with the Royal Bank of Scotland Group in Connecticut told the news source on Thursday. "It's very hard right now to play the headline risk in foreign exchange. We're going to get conflicting comments with a deal eventually getting done, which would be positive for risk."

USA Today reports Boehner noted his disappointment during the past several weeks, saying "no substantive progress" has occurred between the White House and the U.S. House of Representatives.

The Ohio Republican is on the forefront of negotiations with President Obama. But he said recent conversations haven't been entirely propitious, akin to Thursday conversations with U.S. Treasury Secretary Timothy Geithner.

Category: Industry News

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