NEW YORK — The dollar fell sharply Tuesday amid what analysts labeled rising pessimism over the negotiations in Washington to cut the federal budget deficit.
Gold prices edged higher. Republic National Bank of New York at 4 p.m. EST quoted gold bullion at $464.50, up from $463.00 Monday.
The dollar began weakening in overnight foreign trading after glum indications from congressional and White House negotiators that the already-foundering budget deficit talks were slowing even further.
In Tokyo, the dollar fell to a closing 136.05 Japanese yen from 136.85 yen late Monday, snapping a four-session rise. Dealers in Tokyo said the dollar fell sharply on rumors that budget talks had broken down and recovered partially when the rumors were denied.