Investing.com - The dollar gained against the world's major currencies on Thursday as market participants looked beyond the Federal Reserve's plans to expand its quantitative easing program and more towards a U.S. budgetary impasse that could spell recession for the world's largest economy.
In U.S. trading on Thursday, EUR/USD was up 0.03% at 1.3077.
The dollar saw safe-haven demand on concerns the U.S. fiscal cliff, a combination of tax hikes and spending cuts taking effect at the same time early next year, is drawing closer without a budget deal in place, which could contract the economy.
The White House and Congressional Republicans continued to differ on Thursday over how to narrow deficits and pay down debts as part of a budget agreement for 2013.
Democrats have been calling for tax hikes on top U.S. earners, while opposition Republicans have called more for capping tax deductions to increase revenue and cutting more spending elsewhere.
House Speaker John Boehner, an Ohio Republican, said earlier Thursday the White House wasn't taking his party's ideas serious enough, which spooked investors worldwide and fueled safe-haven dollar demand.
Sweeping tax hikes and deep budget cuts are scheduled to take effect at the end of this year, and failure to address them soon could tip the U.S. economy into a recession next year.
Elsewhere, the U.S. Commerce Department reported earlier that U.S. retail sales increased by 0.3% in November from October, whose rates contracted by 0.3%.
November's figures still missed market forecasts for a gain of 0.5%, which further stoked risk-off trading sentiments.
The Department of Labor, meanwhile, reported earlier the number of people filing for initial jobless claims fell by 29,000 to 343,000 last week, beating expectations for a decline of 2,000.
The previous week’s figure was revised up to 372,000 from 370,000.
Meanwhile, official data showed that producer price inflation in the U.S. fell 0.8% last month, compared to forecasts for a 0.5% decline.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.24% at 1.6111.
The dollar was up against the yen, with USD/JPY trading up 0.44% at 83.63 and down against the Swiss franc, with USD/CHF trading down 0.28% at 0.9238.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.01% at 0.9847, AUD/USD down 0.27% at 1.0526 and NZD/USD trading down 0.05% at 0.8431.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.07% at 80.00.
On Friday, the U.S. is to release official data on consumer inflation, the capacity utilization rate, industrial production and preliminary data on manufacturing activity.
In U.S. trading on Thursday, EUR/USD was up 0.03% at 1.3077.
The dollar saw safe-haven demand on concerns the U.S. fiscal cliff, a combination of tax hikes and spending cuts taking effect at the same time early next year, is drawing closer without a budget deal in place, which could contract the economy.
The White House and Congressional Republicans continued to differ on Thursday over how to narrow deficits and pay down debts as part of a budget agreement for 2013.
Democrats have been calling for tax hikes on top U.S. earners, while opposition Republicans have called more for capping tax deductions to increase revenue and cutting more spending elsewhere.
House Speaker John Boehner, an Ohio Republican, said earlier Thursday the White House wasn't taking his party's ideas serious enough, which spooked investors worldwide and fueled safe-haven dollar demand.
Sweeping tax hikes and deep budget cuts are scheduled to take effect at the end of this year, and failure to address them soon could tip the U.S. economy into a recession next year.
Elsewhere, the U.S. Commerce Department reported earlier that U.S. retail sales increased by 0.3% in November from October, whose rates contracted by 0.3%.
November's figures still missed market forecasts for a gain of 0.5%, which further stoked risk-off trading sentiments.
The Department of Labor, meanwhile, reported earlier the number of people filing for initial jobless claims fell by 29,000 to 343,000 last week, beating expectations for a decline of 2,000.
The previous week’s figure was revised up to 372,000 from 370,000.
Meanwhile, official data showed that producer price inflation in the U.S. fell 0.8% last month, compared to forecasts for a 0.5% decline.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.24% at 1.6111.
The dollar was up against the yen, with USD/JPY trading up 0.44% at 83.63 and down against the Swiss franc, with USD/CHF trading down 0.28% at 0.9238.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.01% at 0.9847, AUD/USD down 0.27% at 1.0526 and NZD/USD trading down 0.05% at 0.8431.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.07% at 80.00.
On Friday, the U.S. is to release official data on consumer inflation, the capacity utilization rate, industrial production and preliminary data on manufacturing activity.