NEW YORK (Reuters) – The dollar rose on a day of no clear direction on Tuesday as investors eyed talks about a U.S. debt ceiling to avert a default, which could wreak havoc in the world’s largest economy. can affect the faith of ,
* The dollar index, a measure of the greenback’s value against six currencies, rose 0.2% to 102.61. Against the yen, the greenback also rose 0.2% to 136.315 units.
* Debt limit talks between Democratic President Joe Biden and top Republican Congressman Kevin McCarthy ended on Tuesday after less than an hour.
* The meeting ended on an unexpectedly optimistic note, however, with McCarthy, walking out of the meeting with Biden and other congressional leaders, saying: “A deal is possible by the end of the week.”
* Both sides agree that immediate action is needed.
* “Of course, to the extent that there is a risk of default, it will be chaotic. The question is whether, in the event of a default, Treasuries can serve as collateral in such a leveraged world,” said Axel Merck, chairman and CEO of Palo Merck Investments director of investments in Aalto.
* Historically, the dollar rises in times of financial stress and in periods of debt reduction, when investors rush to undo risky bets.
* “But we don’t want a Treasury bill,” said Mark. “So it’s very difficult to suggest that we have a dollar rally on that deleveraging. I would say it’s very difficult to predict what will happen, other than the volatility could be dramatic.”
* In the afternoon, the euro fell 0.1% to $1.0858, while the pound fell 0.4% to $1.2478.
* US retail sales rose less than expected in April, although the underlying trend remained strong, suggesting consumer spending remained strong at the start of the second quarter.
