Dollar Falls Ahead of European Debt Deal

NEW YORK, Oct. 25 (Xinhua) -- The U.S. dollar on Monday fell against its major counterparts ahead of the European debt deal expected by Wednesday.

There was news saying European leaders were making progress in expanding the region's financial rescue fund to address the ongoing debt crisis. Although the Sunday Summit came to an end without any concrete solution, investors remained optimistic. Markets were hoping a deal with details would be announced by the second European leaders summit on Wednesday.

The euro got boosted and rose to 1.3951 dollars from 1.3864 late Friday.

And the risk assets including stocks and crude oil surged on Monday, driven by the European optimism and strong U.S. earnings. The dollar, which is regarded as a risk-aversion investment, fell when the risk appetite increased. In late Monday trading, the dollar bought 76.05 Japanese yen, compared with 76.12 yen from late Friday. The British pound also rose to 1.6002 dollars from 1.5939. The dollar fell from 0.8846 Swiss francs to 0.8799, and also dropped to 1.0043 Canadian dollars from 1.0093.