Risk sentiment was back in the markets after a much awaited breakthrough in negotiations between bipartisan lawmakers in Washington today that would finally end the 16-day government shutdown and raise the US debt limit.
News broke late in the US session that a Senate fiscal plan has been agreed upon and now the Senate has to vote on it later today followed by the House of Representatives.
While there was great relief in markets, many say this deal is just “kicking the can down the road” since it would only fund the government until mid-January. However, at least a default has been averted for now. In recent days investors were nervous as the October 17 debt ceiling deadline approached.
The positive news of an end to the debt ceiling impasse boosted the US dollar higher against most of its major peers.
Dollar/yen ended the US session at 98.81, up 0.6 percent. Earlier in the session the dollar hit a 3-week high of 98.95, the highest since September 27.
The euro ended the day flat, closing pretty much where it began at $1.3525. During the US session the pair had a volatile trade, swinging from highs of $1.3566 to lows of $1.3472.
Sterling ended the day 0.3 percent lower versus the dollar to $1.5940.
Against the Swiss franc, the dollar closed higher at 0.9136.
Risk sentiment was back in the markets after a much awaited breakthrough in negotiations between bipartisan lawmakers in Washington today that would finally end the 16-day government shutdown and raise the US debt limit.
News broke late in the US session that a Senate fiscal plan has been agreed upon and now the Senate has to vote on it later today followed by the House of Representatives.
While there was great relief in markets, many say this deal is just “kicking the can down the road” since it would only fund the government until mid-January. However, at least a default has been averted for now. In recent days investors were nervous as the October 17 debt ceiling deadline approached.
The positive news of an end to the debt ceiling impasse boosted the US dollar higher against most of its major peers.
Dollar/yen ended the US session at 98.81, up 0.6 percent. Earlier in the session the dollar hit a 3-week high of 98.95, the highest since September 27.
The euro ended the day flat, closing pretty much where it began at $1.3525. During the US session the pair had a volatile trade, swinging from highs of $1.3566 to lows of $1.3472.
Sterling ended the day 0.3 percent lower versus the dollar to $1.5940.
Against the Swiss franc, the dollar closed higher at 0.9136.
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