Dollar index drops to 6-week low, euro firmer

LONDON Tue Dec 4, 2012 8:06am EST

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LONDON Dec 4 (Reuters) - The dollar fell to a six-week low against a basket of currencies on Tuesday as concerns over whether U.S. lawmakers can strike a deal on the "fiscal cliff" weighed on the currency.

The dollar index fell 0.3 percent to 79.653, its lowest level since Oct. 23 as traders continued to pare long positions in the U.S. currency.

The dollar's losses helped the euro extend gains and rise to a seven-week high of $1.30975, up 0.3 percent on the day.