The dollar fell against most major currencies on Friday after the 700 billion dollars bailout plan for U.S. financial industry ran into opposition.
Talks over the bailout broke late on Thursday as some Republican lawmakers wanted an alternative plan under which the government would provide insurance to companies that agree to hold frozen assets. The alternative plan would cost taxpayers less, the Republicans said.
Negotiations restarted on Friday after collapse of Washington Mutual, the largest savings and loan bank of U.S.. Investors wait nervously for an agreement, which could come out by Sunday as some congressmen predicted.
The dollar was mostly lower amid risk aversion. However, it rose against the euro after euro zone sources said market expectations about European Central Bank rate cuts early next year or even sooner were reasonable.
The euro bought 1.4618 dollars in late New York trading compared with 1.4622 dollars it bought late Thursday. The British pound rose to 1.8426 dollars from 1.8382 dollars.
The dollar fell to 1.0891 Swiss francs from 1.0893 Swiss francs, and fell to 106.06 Japanese yen from 106.48 Japanese yen. It fell to 1.0320 Canadian dollars from 1.0338 Canadian dollars.
Source:Xinhua
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