US Session – Dollar rallies amid US debt deal hopes
October 10, 2013 8:30 pm
The Japanese yen was the worst performing G10 currency on Thursday as an improvement in risk appetite is encouraging investors to take more risks, and thereby lessening the demand for the safe haven currencies.
The US dollar strengthened for a third day against the yen, and US equity markets had a broad based rally as investors got a sigh of relief on news that Congressional Republicans proposed a short term debt ceiling lift that will help avert the US from defaulting.
This led to an agreement for an exchange of dialogue between the Republican House of Representatives and with President Barack Obama on budget and deficit issues. It is important to raise the nation’s $16.7 trillion borrowing limit such that the US government’s bills can be paid.
Stress on short-term US interest rates eased after rising sharply in the past two sessions while the US dollar index rose 0.1 percent against a basket of six major currencies. The dollar rose 0.9 percent against the yen to 98.26.
Euro was little changed against the dollar during the US session, with EURUSD stuck in range and mostly trading above $ 1.3516.
Sterling ended the day slightly higher after being supported by news that the Bank of England left monetary policy on hold after its meeting today. GBPUSD rose to a high of $1.5977.
The Japanese yen was the worst performing G10 currency on Thursday as an improvement in risk appetite is encouraging investors to take more risks, and thereby lessening the demand for the safe haven currencies.
The US dollar strengthened for a third day against the yen, and US equity markets had a broad based rally as investors got a sigh of relief on news that Congressional Republicans proposed a short term debt ceiling lift that will help avert the US from defaulting.
This led to an agreement for an exchange of dialogue between the Republican House of Representatives and with President Barack Obama on budget and deficit issues. It is important to raise the nation’s $16.7 trillion borrowing limit such that the US government’s bills can be paid.
Stress on short-term US interest rates eased after rising sharply in the past two sessions while the US dollar index rose 0.1 percent against a basket of six major currencies. The dollar rose 0.9 percent against the yen to 98.26.
Euro was little changed against the dollar during the US session, with EURUSD stuck in range and mostly trading above $ 1.3516.
Sterling ended the day slightly higher after being supported by news that the Bank of England left monetary policy on hold after its meeting today. GBPUSD rose to a high of $1.5977.
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