Investing.com - The dollar fell against most major global currencies on Monday amid growing concerns that partisan bickering may prevent U.S. lawmakers from steering the country away from a combo of tax hikes and spending cuts striking the country next year.
In Asian trading on Monday, EUR/USD was up 0.10% at 1.2723.
At the end of this year, tax breaks are set to expire in the U.S. at the same time cuts to government spending are scheduled to kick in, a combination known as a fiscal cliff that could send the country into a recession next year if left unchecked by Congress.
Fears Democrats and Republicans will engage in partisan bickering and fail to compromise weakened the dollar.
Past sessions saw the greenback strengthen on fiscal cliff fears, though gold became the safe-haven asset of choice on Monday, especially with news that Greece's parliament approved a budget for next year, which sent the dollar falling amid growing appetite for risk.
The euro gained ground on sentiment that Greece agreed to approve an austere budget days after approving EUR13.5 billion in spending cuts and tax hikes needed to appease creditors.
News that Greece's political circles continue to favor sticking with austerity policies required for bailout money gave the single currency support against safe-haven currencies such as the U.S. dollar.
Market participants, however, were not expecting European Union officials to disburse EUR31.5 billion in fresh rescue funding due to Greece just yet.
European finance ministers are due to meet later in Brussels on Monday, though they may spend time reviewing Greece's commitment to austerity, which sparked demand for gold that came at the dollar's expense.
Meanwhile in Japan, official data revealed the economy contracted by annualized 3.5% in the third quarter of this year, which weakened the yen against the U.S. currency.
The greenback was up against the pound, with GBP/USD trading up 0.05% at 1.5905.
The dollar was up against the yen, with USD/JPY trading up 0.02% at 79.49 and down against the Swiss franc, with USD/CHF trading down 0.08% at 0.9478.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.21% at 0.9994, AUD/USD up 0.33% at 1.0419 and NZD/USD trading up 0.20% at 0.8161.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.10% at 81.06.
Markets in the U.S. and Canada will be closed on Monday for national holidays.
In Asian trading on Monday, EUR/USD was up 0.10% at 1.2723.
At the end of this year, tax breaks are set to expire in the U.S. at the same time cuts to government spending are scheduled to kick in, a combination known as a fiscal cliff that could send the country into a recession next year if left unchecked by Congress.
Fears Democrats and Republicans will engage in partisan bickering and fail to compromise weakened the dollar.
Past sessions saw the greenback strengthen on fiscal cliff fears, though gold became the safe-haven asset of choice on Monday, especially with news that Greece's parliament approved a budget for next year, which sent the dollar falling amid growing appetite for risk.
The euro gained ground on sentiment that Greece agreed to approve an austere budget days after approving EUR13.5 billion in spending cuts and tax hikes needed to appease creditors.
News that Greece's political circles continue to favor sticking with austerity policies required for bailout money gave the single currency support against safe-haven currencies such as the U.S. dollar.
Market participants, however, were not expecting European Union officials to disburse EUR31.5 billion in fresh rescue funding due to Greece just yet.
European finance ministers are due to meet later in Brussels on Monday, though they may spend time reviewing Greece's commitment to austerity, which sparked demand for gold that came at the dollar's expense.
Meanwhile in Japan, official data revealed the economy contracted by annualized 3.5% in the third quarter of this year, which weakened the yen against the U.S. currency.
The greenback was up against the pound, with GBP/USD trading up 0.05% at 1.5905.
The dollar was up against the yen, with USD/JPY trading up 0.02% at 79.49 and down against the Swiss franc, with USD/CHF trading down 0.08% at 0.9478.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.21% at 0.9994, AUD/USD up 0.33% at 1.0419 and NZD/USD trading up 0.20% at 0.8161.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.10% at 81.06.
Markets in the U.S. and Canada will be closed on Monday for national holidays.