Investing.com - The dollar moved higher against the other major currencies on Thursday, boosted by hopes for a short term deal to raise the U.S. debt ceiling and avoid a sovereign debt default.
During European late morning trade, the dollar gained ground against the yen, with USD/JPY advancing 0.50% to 97.84.
Hopes that the partial U.S. government shutdown may soon end received a boost from news that House Republican leaders were to hold their first meeting with President Barack Obama since the shutdown began later on Thursday.
President Obama has demanded Republicans raise the U.S. debt ceiling and reopen the government before negotiations on future fiscal policy can take place. The U.S. risks a sovereign debt default if the government borrowing limit is not raised by 17 October.
Demand for the dollar was also underpinned after the minutes of the Federal Reserve’s latest meeting showed that most policymakers were still in favor of tapering stimulus this year.
The minutes from the Fed’s September meeting said the decision not to begin tapering stimulus was a "close call," fuelling expectations that the bank will begin to roll back bond purchases in the next few months.
President Obama announced his nomination of Federal Reserve Vice Chairwoman Janet Yellen to head the U.S. central bank on Wednesday, easing uncertainty over U.S. monetary policy.
The euro was little changed against the dollar, with EUR/USD dipping 0.01% to 1.3521.
The pound was steady close to three-week lows against the greenback, with GBP/USD slipping 0.13% to 1.5934.
The dollar edged higher against the Swiss franc, with USD/CHF rising 0.12% to 0.9111.
Elsewhere, the greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD slipping 0.11% to 0.9433, NZD/USD down 0.51% to 0.8256 and USD/CAD dipping 0.06% to trade at 1.0387.
In Australia, data released on Thursday showed that the number of people employed rose by 9,100 in September, below expectations for a 15,000 increase. However, the unemployment rate unexpectedly ticked down to 5.6% last month, from 5.8% in August.
The New Zealand dollar came under pressure after a report showed that the Business NZ manufacturing index declined to 54.3 in September, from a downwardly revised reading of 57.1 the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.14% to 80.56.
The Bank of England was to announce its benchmark interest rate later in the trading day.
During European late morning trade, the dollar gained ground against the yen, with USD/JPY advancing 0.50% to 97.84.
Hopes that the partial U.S. government shutdown may soon end received a boost from news that House Republican leaders were to hold their first meeting with President Barack Obama since the shutdown began later on Thursday.
President Obama has demanded Republicans raise the U.S. debt ceiling and reopen the government before negotiations on future fiscal policy can take place. The U.S. risks a sovereign debt default if the government borrowing limit is not raised by 17 October.
Demand for the dollar was also underpinned after the minutes of the Federal Reserve’s latest meeting showed that most policymakers were still in favor of tapering stimulus this year.
The minutes from the Fed’s September meeting said the decision not to begin tapering stimulus was a "close call," fuelling expectations that the bank will begin to roll back bond purchases in the next few months.
President Obama announced his nomination of Federal Reserve Vice Chairwoman Janet Yellen to head the U.S. central bank on Wednesday, easing uncertainty over U.S. monetary policy.
The euro was little changed against the dollar, with EUR/USD dipping 0.01% to 1.3521.
The pound was steady close to three-week lows against the greenback, with GBP/USD slipping 0.13% to 1.5934.
The dollar edged higher against the Swiss franc, with USD/CHF rising 0.12% to 0.9111.
Elsewhere, the greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD slipping 0.11% to 0.9433, NZD/USD down 0.51% to 0.8256 and USD/CAD dipping 0.06% to trade at 1.0387.
In Australia, data released on Thursday showed that the number of people employed rose by 9,100 in September, below expectations for a 15,000 increase. However, the unemployment rate unexpectedly ticked down to 5.6% last month, from 5.8% in August.
The New Zealand dollar came under pressure after a report showed that the Business NZ manufacturing index declined to 54.3 in September, from a downwardly revised reading of 57.1 the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.14% to 80.56.
The Bank of England was to announce its benchmark interest rate later in the trading day.