He dollar The US rose on Monday, May 22, against the Japanese yen, just below six-month highs, as investors waited for signs on whether the Federal Reserve will continue to raise interest rates and awaited news on whether the US Congress will raise the debt ceiling.
The dollar index, which measures the value of the greenback against six other major currencies, rose 0.2% to 103.17, falling below last week’s high of 103.63, the level last reached. March 20th.
“The dollar had a nice two-week bounce, helped by rising US interest rates”said Marc Chandler, chief market strategist at Bannockburn Global Forex In New York.
Investors have also been watching negotiations to raise the US debt limit, and the risk of default weighed on risk sentiment, though it is seen as unlikely.
Debt ceiling: expectations for progress in the negotiation between Joe Biden and Republicans
The President of the United States, Joe Biden, and the Republican Speaker of the House of Representatives, Kevin McCarthy, will meet this Monday at the White House at 5:30 p.m. in Washington (6:30 p.m. in Argentina), although compromises will have to be reached and, therefore, expect more fighting before early June, which is when the Treasury would run out of money.
The speaker of the United States House of Representatives affirmed this Monday that the package of measures on the debt ceiling that is being negotiated will be acceptable to the majority of Republican legislators: “I strongly believe that what we’re negotiating right now, a majority of Republicans will see as the right point to put us on the right track.”McCarthy told reporters on Capitol Hill.
The dollar received a slight boost after the president of the Federal Reserve of San Luis, James Bullardstated on Monday that the Fed may still have to raise its benchmark interest rate another half point this year.
How does the rest of the currencies work?
EUR/USD gained 0.12% to $1.0819, after hitting a more than seven-week low of $1.0760 on Friday.
Meanwhile, USD/GBP was broadly flat at 1.2438, just above the three-week lows recorded last week, USD/AUD fell 0.02% to 0.6652, while USD/JPY rose 0.04% to 138.56 yen, boosted by the Japanese yen on the possibility of a pause in US interest rate hikes.
The USD/CNY pair fell 0.01% to the 7.0340 level, and remains above the psychologically significant 7 level, even after US President Joe Biden signaled a possible improvement in prices. relations between China and the United States.
Source: Ambito
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