July 19 (Bloomberg) -- The dollar advanced versus the yen for the first time in three days as President Barack Obama endorsed a deficit-cutting proposal by a bipartisan group of senators.
The U.S. currency erased its drop against the euro as Obama called the revival of the so-called Gang of Six proposal “good news” that may help move negotiations on the deficit and raising the federal debt ceiling.
“The talk of the Gang of Six coming together and maybe helping facilitate some agreement on the debt ceiling, possible fiscal adjustments, that’s really been the catalyst for this move,” said Alan Ruskin, global head of Group of 10 currency strategy at Deutsche Bank AG in New York “It’s a squeeze of any dollar short positions. The dollar is coming back across the board.”
The dollar appreciated 0.1 percent to 79.14 yen at 2:29 p.m. in New York, from 79.04 yesterday.
--With assistance from Klaus Wille and Carolyn Bandel in Zurich. Editors: Dennis Fitzgerald
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