RTRS: Dollar rises versus euro on stimulus bill uncertainty
The dollar gained against the euro on Wednesday in choppy trading as Wall Street stocks pared gains and investors remained uncertain about the final size and scope of the U.S. stimulus package.
The $838 billion economic rescue package, which was passed by the Senate late on Tuesday, must now be reconciled in a joint congressional committee with the version approved by House of Representatives.
"The bill (on the stimulus) is now in joint conference and there would be some gnashing of the teeth. I don't think the markets will be happy," said Adam Fazio, senior currency strategist at CIBC World Markets.
"The more this gets thrown out, the more risk becomes inherent in the market."
Higher market anxiety generally benefits the dollar, yen, and Swiss franc as these currencies are perceived as safe havens with low volatility.
In midmorning trading, the euro fell to $1.2872,, down 0.2 percent on the day. Before U.S. stocks opened, the euro rose to session highs at $1.2998, according to EBS data.
Traders said U.S. stocks came off their peaks as markets failed to push the S&P 500 above the key 835 level, fueling some euro selling versus the dollar.
