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Forex – Dollar mostly lower as traders embrace riskier currencies

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Investing.com - The U.S. dollar is getting rocked by most of its major rivals in Wednesday's Asian session as traders are readying for possible final resolution to the U.S. fiscal cliff by embracing many of the so-called riskier currencies.

In Asian trading Wednesday, EUR/USD soared 0.69% to 1.3285. The pair was likely to find support at 1.3166, Friday's low, and resistance at 1.3284, Thursday's high.

Meanwhile, GBP/USD gained 0.36% to 1.6305. The pair was likely to find support at 1.6079, Friday's low, and resistance at 1.6274, Monday's high.

The dollar was able to gain some steam again the yen, continuing its strength against the Japanese currency, as USD/JPY was seen higher by 0.23% at 86.95.

Riskier assets, including oil and equities, got a lift in Asian trading Wednesday as it became apparent the Republican-controlled U.S. House of Representatives will be forced to vote on fiscal cliff legislation sent by the Senate as is. House Republicans were looking to attach more than $300 billion in additional spending cuts to the Senate bill, but the Senate said it would not support any changes to its package.

The Senate's fiscal cliff bill calls for tax increases totaling $620 billion over the next decade on the wealthiest measures. In a rare sign of bipartisanship in Washington, D.C., the Senate passed bill 89-8 Tuesday morning. There are 100 members in the U.S. Senate. The House is expected to take up the measure on Tuesday night in the U.S.

News that the onerous fiscal cliff debate may finally be drawing to a close touched off modest rallies in riskier assets. USD/CAD slid 0.48% to 0.9876 as the loonie caught a bid on the back of higher oil prices. USD/CHF slipped 0.66% to 0.9093.

Indicating that risk appetite is back, for one session at least, AUD/USD 0.66% to 1.0465 while NZD/USD surged 1.01% to 0.8371. The U.S. Dollar Index fell 0.03% to 79.89.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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