The US Dollar has rallied strongly against the majority of its most traded peers, climbing by 0.21% against the Pound and 0.48% against the Euro.
The ‘Greenback’ found support after investors and economists increased their bets that a deal to resolve the ongoing government shutdown and raise the nation’s debt ceiling will be resolved. The market latched onto comments by the Senate who claimed to have made significant progress towards reaching a deal.
The proposed agreement would suspend the US debt limit until February 7th 2014 and fund the government until the 15th of January 2014. The plan led to economists latching onto hope that a deal would be made with many saying that the government could never be as foolish as to allow the world’s largest economy to default. One spanner in the works to the market’s expectations however is the fact that any potential deal still has to be approved by the House of Representatives, where Speaker John Boehner would have the power to decide whether a vote will be held or demand budget cut.
As optimism grew the US Dollar strengthened broadly against the major currencies but weakened against the riskier higher-yielding currencies such as the Australian and New Zealand Dollars.
“The Dollar seems to be deriving some support against the other major currencies as investor expectations rise that an agreement might be in the offing to raise the debt ceiling. The Dollar will underperform against the higher yielding currencies as risk sentiment improves,” said a foreign exchange specialist.
The markets chose to ignore the release of the latest New York manufacturing data which showed that the regions output grew at a slower pace than expected in October as sales fell and job creation eased. The Federal Reserves Bank of New York’s general economic Index fell to a five-month low of 1.5, down from the 6.3 recorded in September. Economists had called for a rise to 7.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6249
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7373
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0339
The US Dollar/ Australian Dollar Exchange Rate is currently in the region of: 1.0474
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1905
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.4165
The US Dollar/ South African Rand Exchange Rate is currently in the region of: 9.8943
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6002
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3562
(Correct as of 14:40 pm GMT)
Comments are closed.