US dollar rises on 'fiscal cliff' fears

The U.S. dollar rose against major currencies on Thursday as fears that the "fiscal cliff" may jeopardize the U.S. economy boosted demand for safe-haven assets. The U.S. Congress resumed talks over the fiscal cliff on Thursday, but with the Jan. 1 deadline around the corner, the chance for Democrats and Republicans to ink a deal was considered slim. U.S. Senate Majority Harry Reid on Thursday urged Congress Republicans to come up with a plan that both chambers of the legislature could pass, so as to avert the "fiscal cliff." Affected by concerns over the looming "fiscal cliff," U.S. consumer confidence fell sharply in December. The Conference Board ' s confidence index tumbled to 65.1, down from 71.5 in November, the second straight decline and the lowest level since August. The dollar continued rising against the yen on Thursday. Japan' s newly elected Prime Minister Shinzo Abe claimed his post and announced members of a new cabinet on Wednesday when he repeated that he would push for more monetary and fiscal easing measures and intervene yen's exchange rate. In late New York trading, the euro climbed to 1.3238 dollars from 1.3221 dollars of the previous session and the British pound fell to 1.6108 dollars from 1.6129. The dollar slightly increased to 0.9137 Swiss francs from 0. 9133 and went up to 0.9948 Canadian dollars from 0.9944. The dollar bought 86.03 Japanese yen, higher than 85.63 in the previous session.