Hopes of US budget deal push dollar lower

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Associated Press

Posted on November 19, 2012 at 12:01 PM

Updated Monday, Nov 19 at 12:02 PM

NEW YORK (AP) — Hopes that U.S. politicians will reach a budget deal are pushing the dollar lower against the euro. Traders are also hopeful that Greece will get its next batch of bailout money.

Riskier currencies such as the euro tend to strengthen when traders think the economy is getting better. The euro rose to $1.2808 in afternoon trading from $1.2727 Friday.

President Barack Obama and leaders in Congress are in talks to avoid a "fiscal cliff" on Jan. 1, when tax increases and mandatory government spending cuts are set to take effect.

European finance ministers are meeting Tuesday to talk about Greece's next payment.

Concerns that the Bank of Japan might launch more stimulus pushed the dollar to a seven-month high of 81.52 Japanese yen. The dollar was worth 81.22 yen Friday.

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