The US dollar strengthened due to flight to a currency that is considered safe

The dollar index, which measures the greenback against six major rivals, was up 0.38 percent to 103.8847 in late trading.

New York (Armfalcon.com) – The US dollar strengthened against a basket of other major currencies in late trading Wednesday (Thursday morning WIB), as concerns over US debt ceiling talks fueled risk aversion among investors and shifted to safe currencies greenbacks.

The dollar index, which measures greenbacks against six major rival currencies, it was up 0.38 percent to 103.8847 in late trade.

The fall in major stock markets around the world weighed on risk sentiment on Wednesday (24/5/2023) which strengthened the US dollar.

Request for currency safe haven The US dollar rose as traders remained focused on debt ceiling talks, said Vladimir Zernov, an analyst with market information supplier FX Empire.

Also read: The dollar weakens in Asia amid fears of the US debt ceiling, the Kiwi falling

As US President Joe Biden and House Speaker Kevin McCarthy continue to negotiate to raise the federal debt ceiling, Treasury Secretary Janet Yellen reiterated Wednesday (24/5/2023) that the Treasury Department is unlikely to meet all of the US government’s payment obligations by June 1, without the decision of Congress to raise the debt ceiling by 31.4 trillion US dollars.

“We are committed to not missing payments and raising the debt ceiling, but we are not involved in planning what happens in the event of a default,” Yellen said.

Meanwhile, Federal Reserve officials were divided over interest rates, with some members seeing a need for further hikes while others expecting a slowdown to remove the need for further tightening, according to the minutes of the Federal Open Market Committee’s (FOMC) May meeting released on Wednesday (24/5). /2023).

Participants generally expressed uncertainty about how much more policy tightening might be appropriate, with many focusing on the need to maintain optionality after this meeting, said the minutes, which provide more insight into central bank thinking on interest rates and inflation.

“I do not support stopping rate hikes unless we get clear evidence that inflation is moving down toward our 2.0 percent target, but whether we should raise or skip the June meeting will depend on how the data comes in over the next three weeks,” the Federal Governor said. Reserve Christopher Waller.

Also read: The weakening of the rupiah is still influenced by negotiations on the US debt ceiling

In late New York trading, the euro was down to 1.0750 dollars from 1.0775 dollars of the previous session, and the British pound was down to 1.2361 dollars from 1.2417 dollars in the previous session.

The US dollar bought 139.1400 Japanese yen, higher than 138.5240 Japanese yen in the previous session. The US dollar increased to 0.9051 Swiss franc from 0.9013 Swiss franc, and it increased to 1.3598 Canadian dollars from 1.3505 Canadian dollars. The US dollar increased to 10.7255 Swedish krona from 10.6239 Swedish krona.

Translator: Apep Suhendar
Editor: Nusarina Yuliastuti
COPYRIGHT © BETWEEN 2023