The euro rebounded against the dollar on Wednesday (Thursday morning GMT ) , for the fourth consecutive session , even though the U.S. budget deal gives the Federal Reserve more reason to cut stimulus .
At 22:00 GMT ( Thursday at 5:00 pm ) , the euro traded at 1.3785 dollars , compared with 1.3760 dollars late Tuesday , AFP reported .
The dollar fell to 102.40 yen from 102.81 yen , while the euro fell to 141.19 yen from 141.48 yen .
On Tuesday afternoon , Democratic and Republican negotiators agreed on a two -year budget plan , which is scheduled to reduce the budget cuts that will hit growth and avoid closure activities ( shutdown ) other governments as seen in October .
Analysts said it was positive for growth , giving the Fed - which had expressed concern over repeated Washington brinkmanship policy - little reason to maintain the asset purchase program 85 billion dollars per month .
If Congress ratifies the agreement , chief U.S. economist at S & P Beth Ann Bovino said , " we would expect the U.S. economy to grow faster in 2014 . "
" Tentative agreement also supports our expectation that the Federal Reserve may begin to reduce bond purchases this month . "
U.S. bond yields jumped after the deal , the U.S. government bond 10-year futures rose to 2.84 percent from 2.80 percent .
But the preference for a greater risk of retaining players in the euro , on hopes the euro zone turned after Italy pulled out of the recession two years and Prime Minister Enrico Letta won a parliamentary confidence vote .
The British pound slipped after strong gains recently against the dollar , falling to 1.6374 dollars from 1.6442 dollars . The dollar fell to 0.8863 Swiss francs from 0.8871 francs .
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