The eleventh-hour agreement that stopped the US from plunging over the fiscal cliff sparked a rally in risk assets and a sell-off in the dollar this morning – offering an immediate return for those who took a bearish view on the greenback late last week.

The House of Representatives yesterday backed a Senate bill, agreed in the early hours of New Year's Day, to raise taxes for only those Americans earning more than $400,000. Congress also agreed to delay a decision on key spending cuts, including defence and welfare spending, for two months.