Dollar Reacts to Political Impasse and Tightening Credit Conditions

The dollar edged higher against most major peers on Tuesday as traders looked at new inflation data for a clearer picture of the economic outlook and the Federal Reserve’s potential rate-hike path, with no immediate breakthrough on US debt-limit talks. Happened.

The dollar index, which measures the currency against six rivals, pared gains that took it to a nearly one-week high earlier in the session, and was last seen at 101.63, or up 0.2%, in afternoon trade.

John Doyle, vice president of trading and dealing at Monex USA, said: “I believe we’re probably going to see a little bit of grandstanding (on the debt limit), just making sure that each side is increasing their base a little bit. ” , “So I don’t think we’re going to have a breakthrough today. And so the dollar could be a little stronger.”

“Overall, over the long term, we see a deal happening,” he said. “We’ve seen this movie before. But we shouldn’t underestimate the danger that wheels can come off. The danger is always there. Once you play with fire enough, eventually you can get burned. So Unless we think this is the most likely scenario, we cannot completely rule it out.”

The release of closely watched US inflation data on Wednesday is likely to set the tone for markets, following stronger-than-expected jobs data last week.

Any Federal Reserve policy change will have to be weighed against the backdrop of recent turmoil in the US banking sector and a political impasse in Washington over raising the country’s debt ceiling and avoiding default, analysts said.

The Fed’s quarterly survey of bank lending officers released Monday showed that credit conditions for US businesses and households are tightening at the start of the year, most likely due to interest rate hikes.

The survey was one of the first measures of sentiment in the banking sector since the recent spate of bank failures triggered by the collapse of Silicon Valley Bank in March.

The euro fell 0.39% to $1.0962.

Sterling held steady at $1.2620 ahead of Thursday’s central bank policy meeting.

“It’s widely expected that we’re going to get quarterly basis point growth, and then we’ll see where they go from there,” Doyle said.

,

Currency Bid Price 4:03 PM (2003 GMT)

Details RIC Last US Close PCT Change YTD PCT High Bid Low Bid

last change

Session

Dollar Index 101.6100 101.4400 +0.19% -1.817% +101.8400 +101.3500

EUR/USD $1.0963 $1.1005 -0.37% +2.32% +$1.1003 +$1.0941

USD/JPY 135.2100 135.1450 +0.07% +3.15% +135.3450 +134.7250

EUR/JPY 148.24 148.69 -0.30% +5.66% +148.6900 +147.9000

Dollar/Swiss 0.8903 0.8897 +0.09% -3.69% +0.8943 +0.8890

Sterling/Dollar $1.2621 $1.2618 +0.02% +4.36% +$1.2639 +$1.2580

Dollar/Canadian 1.3381 1.3373 +0.07% -1.23% +1.3406 +1.3367

Aus/Dollar $0.6762 $0.6781 -0.30% -0.82% +$0.6787 +$0.6747

EUR/Swiss 0.9761 0.9787 -0.27% -1.35% +0.9800 +0.9759

Euro/Sterling 0.8686 0.8719 -0.38% -1.79% +0.8725 +0.8680

NZ $0.6334 $0.6345 -0.19% -0.26% +$0.6349 +$0.6319

dollar/dollar

Dollar/Norway 10.5720 10.5050 +0.53% +7.61% +10.5890 +10.5200

EUR/NORWAY 11.5929 11.5493 ​​+0.38% +10.47% +11.6028 +11.5483

Dollar/Sweden 10.1966 10.1571 -0.07% -2.03% +10.2147 +10.1520

Euro/Sweden 11.1749 11.1828 -0.07% +0.23% +11.1961 +11.1622

read all latest business news, tax news And stock market update Here

(This story has not been edited by News18 staff and is published from a syndicated news agency feed)