JABAR EKSPRES – The U.S. dollar weakened against a basket of major peers in late Wednesday morning trading, as traders awaited a vote on a debt ceiling deal in Congress.
The dollar index, which measures the greenback against six major rivals, fell 0.10 percent to 104.1665 in late trade.
Despite some progress through the deal, some Republicans stated that they would vote against the deal in the Republican-dominated House of Representatives.
In addition to debt negotiations, markets have refocused on inflation.
The US Consumer Confidence Index in May slowed to 102.3 from 103.7 in April, but was higher than the consensus estimate of 100, according to data released by The Conference Board on Tuesday (5/30).
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“Consumer confidence declined in May as consumers’ views of current conditions became less optimistic while their expectations remained bleak,” said Ataman Ozyildirim, senior economic director at The Conference Board.
The report showed that American inflation expectations remain high but stable at an average of 6.1 percent over the next 12 months.
High inflation may not go away quickly barring a sharper slowdown in the US economy, Thomas Barkin, president of the Richmond Federal Reserve said on Tuesday (05/30/2023).
“It’s going to be more stubborn than a lot of people expect. There’s a lot of uncertainty as to where interest rates should go,” Barkin said, although he called the current level of rates “restrictive.”
The euro managed to recover from multi-week lows despite disappointing economic sentiment in the eurozone for May, which fell to 96.5 from 99 in April.
In late New York trading, the euro rose to 1.0719 dollars from 1.0709 dollars in the previous session, and the British pound rose to 1.2392 dollars from 1.2357 US dollars in the previous session.
The US dollar bought 139.8380 Japanese yen, lower than 140.3940 Japanese yen in the previous session. The US dollar rose to 0.9062 Swiss francs from 0.9041 Swiss francs, and rose to 1.3602 Canadian dollars from 1.3593 Canadian dollars. The US dollar rose to 10.8802 Swedish krona from 10.8185 Swedish krona.
