The US dollar fell after the Greek lawmakers supported the proposition of Prime Minister George Papandreou about budget cuts and asset sales, reducing nervousness on markets and erasing attractiveness of the US currency as a safe haven.
155 lawmakers voted for the Prime Minister’s package of budget cuts and asset sales, while 138 voted against this proposition. Parliament will vote tomorrow for implementing of the austerity plan. The positive outcome of today’s vote reinforced the outlook that the European Central Bank will boost its lending rates before the Federal Reserve.
The Dollar Index, tracking the greenback versus the currencies of the six major trading partners of the US, fell 0.5 percent to 74.668. The Standard & Poorâs 500 Index gained 0.7 percent. The Thomson Reuters/Jefferies CRB Index of commodities rose 1 percent.
EUR/USD climbed from 1.4370 to 1.4424 as of GMT 19:29 today after falling earlier to 1.4329. GBP/USD advanced from 1.6000 to 1.6053, while USD/JPY slumped from 81.11 to 80.55 before trading at 80.89.
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