Forex: Friday’s review

The dollar rose for the first time in three days against the euro because of the departure of investors in asset-seekers awaiting the outcome of talks between President Barack Obama and U.S. lawmakers on fiscal cliff.

The leaders of the U.S. Congress, leaving the White House after the completion of negotiations on the issue of the fiscal cliff, said that the discussion was "constructive" and laid the foundation for further progress.

The dollar index extended its fourth weekly gain as between Israel and the Hamas military conflict erupted. Israel expanded its bombing of the Gaza Strip and Palestinian rockets hit areas around Jerusalem and Tel Aviv. The Israeli army said it has deployed tanks near the Gaza border, and called up reservists.

The yen strengthened against most of its 16 major counterparts on speculation that the decline this week was too fast. Recall that the yen fell on Thursday, when the leader LDPYA Shinzo Abe, who is likely to become the next prime minister of Japan, continued to put pressure on the Bank of Japan to a more aggressive easing of monetary policy. Later, the Japanese yen has lost previously won positions after the elections in Japan were scheduled for December.

The euro traded little changed against the Swiss franc at 1.2049 francs after the head of the Swiss National Bank Thomas Jordan said that the franc is highly inflated and harm the Swiss economy.