Dollar rises on budget deal worries

AP News
Posted: Dec 21, 2012 4:25 PM

NEW YORK (AP) — The dollar rose against most major currencies Friday as budget talks stalled in Washington.

House Republicans called off a vote on tax rates. If lawmakers don't reach a deal on reducing the budget deficit, steep tax increases and government spending cuts kick in at the beginning of next year.

Traders tend to buy safer currencies, such as the dollar, when they are concerned about the economy.

The euro fell to $1.3176 late Friday from $1.3241 late Thursday. The euro is up just half a percent against the dollar for the week.

The British pound fell to $1.6160 from $1.6284.

The dollar rose to 0.9168 Swiss franc from 0.9119 Swiss franc and to 99.41 Canadian cents from 98.74 Canadian cents.

The dollar fell to 84.23 Japanese yen from 84.42 Japanese yen.