Investing.com - The U.S. dollar was broadly higher against the other major currencies on Friday, as mounting concerns that U.S. officials will not manage to agree on a deal to prevent a fiscal crisis by the end of the year boosted demand for the safe haven greenback.
During European morning trade, the dollar was higher against the euro, with EUR/USD dropping 0.33% to 1.3200.
Sentiment weakened after U.S. House Speaker John Boehner pulled his so-called Plan B fiscal cliff option, which called for tax increases only on those Americans earning USD1 million or more per year, because his Republican colleagues did not support the legislation.
Although U.S. financial markets were to open Friday, the U.S. House has adjourned for the Christmas holiday, fueling speculation that policymakers will not be able to avert the fiscal cliff.
Failure to prevent tax hikes from taking effect at the end of this year right when automatic spending cuts are due to take effect could tip the U.S. economy into a recession.
Also Friday, research group Gfk said that its index of Germany’s consumer climate fell to 5.6 in December from a reading of 5.8 the previous month. Analysts had expected the index to improve to 5.9 this month.
The greenback was higher against the pound, with GBP/USD falling 0.18% to 1.6250.
Earlier in the day, official data showed that the U.K. economy expanded less-than-anticipated in the third quarter, rising 0.09%, below expectations for a 1% rise.
A separate report showed that public sector net borrowing rose more-than-expected in November, rising to GBP15.3 billion from GBP6 billion the previous month. Analysts had expected public sector net borrowing to rise to GBP14.2 billion last month.
Meanwhile, official data also showed that the U.K.'s current account deficit narrowed to GBP12.8 billion in the third quarter from a deficit of GBP17.4 billion, beating expectations for a drop to GBP14 billion.
Elsewhere, the greenback was lower against the yen, with USD/JPY declining 0.47% to trade at 83.99, and higher against the Swiss franc, with USD/CHF rising 0.30% to 0.9143.
The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD adding 0.28% to 0.9904, AUD/USD declining 0.39% to 1.0441 and NZD/USD retreating 0.73% to 0.8278.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.24% to 79.49.
Later in the day, the U.S. was to release revised data on consumer sentiment from the University of Michigan, as well as government data on personal income and spending.
During European morning trade, the dollar was higher against the euro, with EUR/USD dropping 0.33% to 1.3200.
Sentiment weakened after U.S. House Speaker John Boehner pulled his so-called Plan B fiscal cliff option, which called for tax increases only on those Americans earning USD1 million or more per year, because his Republican colleagues did not support the legislation.
Although U.S. financial markets were to open Friday, the U.S. House has adjourned for the Christmas holiday, fueling speculation that policymakers will not be able to avert the fiscal cliff.
Failure to prevent tax hikes from taking effect at the end of this year right when automatic spending cuts are due to take effect could tip the U.S. economy into a recession.
Also Friday, research group Gfk said that its index of Germany’s consumer climate fell to 5.6 in December from a reading of 5.8 the previous month. Analysts had expected the index to improve to 5.9 this month.
The greenback was higher against the pound, with GBP/USD falling 0.18% to 1.6250.
Earlier in the day, official data showed that the U.K. economy expanded less-than-anticipated in the third quarter, rising 0.09%, below expectations for a 1% rise.
A separate report showed that public sector net borrowing rose more-than-expected in November, rising to GBP15.3 billion from GBP6 billion the previous month. Analysts had expected public sector net borrowing to rise to GBP14.2 billion last month.
Meanwhile, official data also showed that the U.K.'s current account deficit narrowed to GBP12.8 billion in the third quarter from a deficit of GBP17.4 billion, beating expectations for a drop to GBP14 billion.
Elsewhere, the greenback was lower against the yen, with USD/JPY declining 0.47% to trade at 83.99, and higher against the Swiss franc, with USD/CHF rising 0.30% to 0.9143.
The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD adding 0.28% to 0.9904, AUD/USD declining 0.39% to 1.0441 and NZD/USD retreating 0.73% to 0.8278.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.24% to 79.49.
Later in the day, the U.S. was to release revised data on consumer sentiment from the University of Michigan, as well as government data on personal income and spending.