The dollar declined for a second day against the euro as U.S. lawmakers publicly wrangled over the spending cuts and tax increases of the so-called fiscal cliff.

The greenback was mixed against higher-yielding currencies after a report showed the U.S. economy grew more than previously estimated in the third quarter and House Speaker John Boehner said “no substantive progress” was made in budget talks.

Senate Majority Leader Harry Reid said Democrats were all on the same page on budget talks and Senator Chuck Schumer said there has been progress. House Democratic Leader Nancy Pelosi said Boehner’s comments were a “tactic.”

The euro gained against the majority of its 16 most-traded peers as Italy’s benchmark bonds gained for a third day as borrowing costs declined at a debt auction.

Spain’s 10-year bond yield dropped to the lowest level in eight months while similar-maturity Italian yields declined to the least in two years, signaling the debt crisis that has weighed on the shared currency since 2010 may be easing.