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U.S. Dollar Mixed After Law Makers Strike Deal On Fiscal Cliff

The U.S. dollar showed mixed trading against other major currencies on Tuesday after President Barack Obama and Senate leaders reached a deal to avert "fiscal cliff" that would have pushed the world's biggest economy into recession.

While the greenback climbed against the franc, it stabilised against the pound, euro and the yen.

The income tax cuts would be extended for household income up to $450,000, with rate above 39.6 percent above that threshold. The deal also expands unemployment benefits for a year. However, spending cuts that are scheduled to begin in early January are delayed by two months.

The House of Representatives will pass the bill after being considered by the Senate today.

Against the franc, the greenback spiked up to 0.9198, its highest level since December 14. The greenback thus added 0.47 percent from yesterday's close of 0.9155. The greenback is likely to seek next resistance level at 0.926.

The American currency declined against the euro in early Asian trading and held in a tight range thereafter. As of now, the euro-greenback pair is trading at 1.3219, compared to Monday's close of 1.3197.

The greenback is now trading near yesterday's close of 86.75 against the yen.

Against the British unit, the greenback that bounced back from a previous low of 1.6261 is worth 1.6227. At Monday's close, the pound-greenback pair closed trading at 1.6253.

The financial markets are closed today for New Year day.

by RTTNews Staff Writer

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