The US dollar strengthens amid debt ceiling uncertainty

The US dollar strengthens amid debt ceiling uncertainty

NEW YORK, May 23 (Xinhua) — The U.S. dollar maintained its upper hand on Tuesday as concerns over the U.S. debt ceiling talks weighed on investors’ risk appetite.

The dollar index, which measures the greenback against six major peers, rose 0.28 percent to 103.4864 in late trade.

The lack of resolution on the US debt ceiling remains the key support for the US dollar. “I need all of you to stick with me on the debt limit, we’re nowhere near a deal yet,” U.S. House Speaker Kevin McCarthy told House Republicans on Tuesday. Republican debt ceiling negotiator Garret Graves also said things did not go well during the talks.

The U.S. dollar was higher against most of the majors on Tuesday as investors remained concerned about the U.S. debt ceiling, noted Kenny Fisher, market analyst with online forex trading platform and broker OANDA.

DailyFX strategist Diego Colman said US business activity and the labor market have held up remarkably well in recent months despite many headwinds, including the turmoil in the banking sector that erupted in March.

“There is reason to believe that the US dollar may hold the upper hand for a little longer,” says Colman.

On a similar note, Sevens Report Research founder Tom Essaye said that “from a technical perspective, there are signs that a potential bottom for the dollar has formed.”

In late New York trading, the euro fell to $1.0775 from $1.0819 in the previous session, and the British pound fell to $1.2417 from $1.2442 in the previous session.

The US dollar bought 138.5240 Japanese yen, down from 138.5500 Japanese yen from the previous session. The US dollar increased to 0.9013 Swiss francs from 0.8970 Swiss francs and it eased to 1.3505 Canadian dollars from 1.3507 Canadian dollars. The US dollar increased to SEK 10.6239 from SEK 10.5523.






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