Dollar Falls as House Sets Deficit Session, Damping Haven

The dollar fell to an almost eight-month low against the euro as the Republican-controlled House of Representatives planned a Dec. 30 session as part of efforts to avert the so-called fiscal cliff.

The U.S. currency erased losses earlier today after Senate Majority Leader Harry Reid said policy makers didn’t have time to resolve the deficit-reduction stalemate that threatens the nation with recession, fueling haven demand. The 17-nation euro climbed after French consumer confidence unexpectedly improved and Italian business sentiment increased. The yen reached a 28-month low against the dollar as John Taylor, founder and chairman of New York-based currency hedge fund FX Concepts LLC, said Japan’s currency may weaken to 90 per dollar for the first time since June 2010.