Dollar makes gains as Barack Obama returns to work

The dollar has made gains in forex trading this afternoon (November 7th) as Barack Obama begins his first day back at work after being re-elected as president of the US in the early hours of this morning.

Now the race to the White House is over for another four years, attentions have turned to the looming clash over the country's budget measures.

The president will need to secure a deal with Congress to avoid the $600 billion (£375 billion) fiscal cliff of tax rises and spending cuts due to hit the world's largest economy in the new year.

These levies include ending a tax relief scheme for middle earners and changing how much doctors are paid by Medicare, the government-administered healthcare scheme used by millions of Americans.

If the fiscal cliff is not avoided, there are fears it may derail the US recovery and even push it back into recession.

At 15:55 GMT, the dollar advanced by 0.4 per cent versus the euro to $1 buying €0.783.

Find out about the dollars and forex trading at City Index.

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