Friday, June 9, 2023

Super dollar near 5-week high as focus turns to US debt ceiling

The dollar was trading below a five-week high a day earlier on Tuesday, while the pound erased some of its losses after a rise in UK unemployment data suggested they may be needed in the coming months. Can To reduce the inflation of England.

The dollar index, which measures the greenback’s performance against a basket of six currencies, was down 0.14% at 102.29 in early trade on Monday after hitting 102.75, its highest level since May 10.

The dollar was down 0.3% against the Swiss franc at $0.8928 and the yen was down 0.2% at 135.8 yen. The interest rate-sensitive Japanese currency also reacted to lower US yields.

Many things that keep investors in suspense, such as the crucial meeting between the President of the United States, Joe Biden, and the Speaker of the House of Representatives, Republican Kevin McCarthy, with just over two weeks to go before the US government run on your bills. Don’t have money to pay.

Debt ceiling concerns are the reason for the recent strength of the dollar, which often benefits from a “flight to safety” as well as changing expectations about central bank policy, analysts say.

Elsewhere, sterling fell 0.5% to $1.2460 against the dollar and weakened to 87.17 pence per euro after Britain’s unemployment rate unexpectedly rose to 3.9% in the three months to March, as more people re-entered the economy. sought to. job market. It later erased its losses and traded flat against the US Dollar.

The market is pricing in at least another 25 basis point rate hike from the Bank of England, with a good chance of another hike, but this data could make the Bank of England more cautious.

The euro was trading at $1.0893, up slightly, on the back of German investor confidence and confirmation from the European Union’s statistics agency that eurozone growth was 0.1% quarter-on-quarter in the first quarter.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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