New York City -
The dollar advanced against most major currencies Friday, as foreign exchange markets digested apparent progress in talks to stave off a US debt default and end the US government shutdown.
The euro rose against the dollar, trading at $1.3546 near 2300 GMT, up from $1.3520 on Thursday.
But the dollar rose to 98.59 Japanese yen from 98.15.
The dollar was also up against the British pound and the Swiss franc.
The euro gained on the yen, trading at 133.55 from 132.70.
Talks continued on Friday between President Barack Obama and congressional Republicans to extend the US borrowing authority by an October 17 deadline and re-open the government shuttered since October 1.
While there was no deal by Friday evening, both sides have described the talks as making progress towards averting a US debt default.
Although the equity markets have rallied strongly on apparent progress to reach a compromise, currency markets have taken a more subdued response.
“Underlying sentiment toward the buck may continue to dither since the proposed debt fix in Washington may only be a temporary solution, which could see another political impasse come back to haunt the dollar in a matter of weeks,” said Joe Manimbo, senior market analyst at Western Union Business Solutions.
Kathy Lien, analyst at BK Asset Management, predicted the dollar would rally if Congress agrees on temporary funding measures.
“However if they continue to bump heads and reject each other's proposals, the dollar will remain under pressure as investors position for the possibility of default,” Lien said.
Among other currencies, the pound slipped to $1.5954 from $1.5966.
The dollar advanced to 0.9121 Swiss franc from 0.9114. - Sapa-AFP