US President Barack Obama accepted the deficit reduction plan of the bipartisan group of senators, bringing hope for resolution of the deadlock in discussion an increase of the debt ceiling. The US dollar rose against the Japanese yen and trimmed its losses versus the euro.
The group led by Republican Senator Saxby Chambliss of Georgia and Senator Mark Warner of Virginia proposed plan for an immediate reduction in spending by $500 billion followed by a
Republican Senator Tom Coburn of Oklahoma was cautiously optimistic:
In the next 24 hours, youâre going to see a significant portion of the Senate come behind this — bipartisan — maybe 60 members, and letâs see how things roll. This doesnât solve our problems, but this creates the way forward where we can.
There are plenty of senators who would likely oppose the proposed plan and the US debt problems are far from being resolved.
EUR/USD traded at 1.4156 after climbing from 1.4112 to 1.4216, while USD/JPY advanced from 79.03 to 79.08 as of 21:14 GMT today.
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