Thursday, June 1, 2023

Dollar rises with markets pending US debt ceiling talks

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.

Nation World News Desk
Nation World News Desk
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