NEW YORK, May 29 (Xinhua) — The U.S. dollar rose slightly in late trade Monday on improved risk appetite following the announcement of the U.S. debt ceiling deal.
The dollar index, which measures the greenback against six major peers, rose 0.06 percent to 104.2663 in late trade.
The White House and House Republicans struck a deal on the federal government’s debt ceiling over the weekend, lending support to the US dollar against the euro.
The decline in US credit default swaps (CDS) in the near term indicates less concern about a US debt default, which could strengthen the US dollar and put downward pressure on the euro’s exchange rate against the US dollar, said James Hyerczyk, senior market. analyst with market intelligence provider FX Empire.
Still, the US dollar weakened against most other major currencies as risk appetite improved.
Thin trading over the US Memorial Day weekend led to narrow fluctuations in major currency pairs on Monday.
In late New York trading, the euro was down to $1.0709 from $1.0730 in the previous session, and the British pound rose to $1.2357 from $1.2350 in the previous session.
The US dollar bought 140.3940 Japanese yen, down from 140.6220 Japanese yen from the previous session. The US dollar fell to 0.9041 Swiss francs from 0.9047 Swiss francs and it fell to 1.3593 Canadian dollars from 1.3615 Canadian dollars. The US dollar rose to SEK 10.8185 from SEK 10.8130.
Source: sn.dk