Dollar dives as markets left waiting for debt deal

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The dollar touched a three week low against the euro as investors were kept waiting for signs of progress in US lawmakers' attempt to raise the debt ceiling.

A speech by US president Barack Obama last night indicating no deal was imminent pushed the dollar down against a basket of currencies, including the troubled euro. Safe haven gold maintained this week's fresh high of $1,615 an ounce, after Obama said the debt impasse could "do serious damage" to the US economy. The greenback touched a three-week low against the euro despite fears over the strength of the eurozone's latest bailout package. Eurozone banking stocks fell sharply in trading on Monday, just days after a deal to extend the Greek bailout. Ratings agency Moody's warned ...

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