The US Dollar is trading close to a three-week high against the Pound and is trading higher against many of its most traded peers as hopes grow that a deal will be made for the US to avoid a sovereign debt default.
Hopes for a deal grew after Republican leaders said that they were to hold their first meeting with President Barrack Obama since the government shutdown began last week. Investors are hoping that the two sides will agree to a short term deal to raise the US debt ceiling and negotiate over the budget dispute.
The Dollar was also supported by the publication of the Federal Reserve’s last policy meeting minutes. The report showed that most of the Central Bank’s policy makers were keen to go ahead with a cut to the $85 billion a month quantitative easing programme.
The currency shrugged off data by the Department of Labour which showed that the number of US filing for unemployment benefits soared by 66,000 in the week ending October 5th. The total of claimants rose to 374,000; the jump is the highest recorded since Superstorm Sandy battered the Eastern seaboard in November 2012.
“Claims are likely to be distorted for some time, Private firms are stepping back. Given all of the uncertainty, they are unlikely to hire” said economist Raymond James.
The increase was being blamed on the uncertainty over the federal government shutdown and approaching debt ceiling deadline. Investors are warning that if no deal is made to raise the debt ceiling it would have catastrophic consequences for the global economy.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6273
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7400
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0395
The US Dollar/ Australian Dollar Exchange Rate is currently in the region of: 1.0601
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2112
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.7470
The US Dollar/ South African Rand Exchange Rate is currently in the region of: 9.9704
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5938
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3513
(Correct as of 14:25 pm GMT)
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