Super dollar retreats from 5-week highs after key economic data

Super dollar retreats from 5-week highs after key economic data

He dollar The US is down from a five-week high, pressured by weak manufacturing index data as it consolidates gains made last week on fears over the debt ceiling. Meanwhile, the Turkish Lira it sank to almost a record low, due to political uncertainty.

The greenback slumped on news that the New York Federal Reserve’s Empire State Manufacturing Index plunged to -31.8 this month from a reading of 10.8 in April. The dollar’s slide came after Friday posted its best weekly performance since September 2022.

“I think we are consolidating today after a big move in the dollar last week,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. “Things that have weighed on the dollar recently have not gone away, like the debt ceiling, although there has been some progress.”

President Joe Biden is scheduled to meet with congressional leaders on Tuesday for face-to-face talks, a day before he leaves for a G7 meeting in Japan.

Although the two sides do not appear close to an agreement, the White House has not ruled out annual spending limits that Republicans say must accompany any increase in the nation’s $31.4 trillion debt limit.

The dollar index, which compares the greenback to a basket of six currencies, was down 0.2% at 102.48, less than a five-week high of 102.75 hit earlier in the session.

Find out more – I followed the price of the blue dollar, official, CCL and MEP in Argentina

Analysts point out that the recent strength of the dollar may be due to several factors, including concerns about inflation in the United States and fears that the stagnation of the debt ceiling and global economic growth will prompt the purchase of safe haven assets.

The euro rose 0.2% against the dollar to $1.0875, recovering after falling 1.54% the previous week.

Source: Ambito

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