The US Dollar has edged higher as demand for safe haven currencies increased as the midnight deadline for a deal regarding the USA’s budget and the rising of the debt ceiling draws closer.
Adding to the Dollar’s strength was the release of the latest Chicago Index which showed that business activity in the country expanded more than forecast in September. The Index rose to 55.7 in September above the 53 recorded in August making it the highest reading recorded in four-months. Economists had been expecting a rise to 54, any figure above 50 indicates expansion.
The Dollar is coming increasing pressure as the deadline for Congress to pass a short-term budget draws closer, if no budget can be agreed upon then federal government is likely to shut down. Such a move will have a negative impact on the US economy. Also piling on the pressure is the lack of progress regarding the nation’s debt ceiling with neither political group backing down. If the debt ceiling is not raised then the country will default on its debt repayments, the consequences of which are unclear as since the ceiling s inception in 1917 a rise has always been agreed upon.
The Markets are also jittery after data released earlier in the session showed that China’s HSBC manufacturing index was revised down to 50.2 from an initial reading of 51.2 this month, the data indicates that the recovery in the world’s second largest economy remains fragile.
Issues in Italy have also damaged risk sentiment.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6190 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7388 <
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.9667 <
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6156 >
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3535 >
(Correct as of 15:50 pm GMT)
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