Dollar Drops as Fiscal-Cliff Negotiations Go Public; Euro Gains

The dollar declined for a second day against the euro as U.S. lawmakers publicly wrangled over the spending cuts and tax increases of the so-called fiscal cliff.

The greenback was mixed against higher-yielding currencies after a report showed the U.S. economy grew more than previously estimated in the third quarter and House Speaker John Boehner said “no substantive progress” was made in budget talks. The euro gained against the majority of its 16 most-traded peers as Italy’s benchmark bonds rose for a third day as borrowing costs declined at a debt auction. Sweden’s krona weakened after the economy expanded at a slower pace last quarter.