He dollar started trading lower on Friday but continued to rise for the third straight week as markets bet on interest rates higher for a longer time to curb inflation, and nervously waited for the resolution of negotiations on US debt ceiling.
Clear progress on Thursday in talks between President Joe Biden and Republican congressman Kevin McCarthy helped calm nervousness, but markets remained on the brink of any default risk ahead of the long holiday weekend in USA.
“Monday is a public holiday in the US, so market players will have to wait until Tuesday, May 30th to re-trade positions, so there is a strong belief that Washington today it is necessary to come to an agreement,” MUFG currency analysts say.
Operators Wall Street They are becoming increasingly wary of US government bonds, but the prospect of an early deal helped boost market sentiment on Friday and shore up risk-sensitive currencies at the dollar’s expense.
The dollar pulled back from its six-month high against the yen and traded at 139.675 units, down from 140.23 in the previous session, the highest level since November.
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.