Investing.com - The dollar was broadly higher against the other main currencies on Wednesday amid hopes for a deal to raise the U.S. debt ceiling and end the government shutdown, which has entered its third week.
During U.S. morning trade, the dollar was steady at two-week highs against the yen, with USD/JPY inching up 0.01% to 98.58.
The dollar found support after Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal to raise the U.S. debt ceiling and reopen the federal government.
If an agreement to raise the government borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
Meanwhile, data released on Tuesday showed that an index of manufacturing activity in the New York region came in below expectations this month.
The Federal Reserve Bank of New York said that its general business conditions index fell to 1.52 in the current month from 6.29 in September. Analysts had expected a reading of 7.0.
The euro was lower against the dollar, with EUR/USD down 0.51% to 1.3491.
The single currency shrugged off data showing that German economic sentiment improved more-than-expected in October, rising to the highest level since April 2010.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose by 3.2 points to hit 52.8 in October from September’s reading of 49.6. Analysts had expected an unchanged reading.
The dollar was also higher against the pound, with GBP/USD falling 0.20% to 1.5950.
In the U.K. data on Tuesday showed that consumer price inflation accelerated 2.7% on a year-over-year basis last month, unchanged from August and was 0.4% higher from a month earlier.
The dollar was close to one-month highs against the Swiss franc, with USD/CHF advancing 0.58% to 0.9154.
Elsewhere, the greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD climbing 0.45% to 0.9529, NZD/USD rising 0.24% to 0.8378 and USD/CAD easing up 0.13% to trade at 10367.
The Australian dollar strengthened after minutes from the Reserve Bank of Australia's October meeting indicated that the bank is in no hurry to cut interest rates further, saying that previous rate cuts are still affecting the nation's economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.43% to 80.71.
House Republicans were expected to outline plans to pass their own bill to reopen the government and increase the government borrowing limit later Tuesday, rejecting the possible deal being negotiated in the Senate.
During U.S. morning trade, the dollar was steady at two-week highs against the yen, with USD/JPY inching up 0.01% to 98.58.
The dollar found support after Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal to raise the U.S. debt ceiling and reopen the federal government.
If an agreement to raise the government borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
Meanwhile, data released on Tuesday showed that an index of manufacturing activity in the New York region came in below expectations this month.
The Federal Reserve Bank of New York said that its general business conditions index fell to 1.52 in the current month from 6.29 in September. Analysts had expected a reading of 7.0.
The euro was lower against the dollar, with EUR/USD down 0.51% to 1.3491.
The single currency shrugged off data showing that German economic sentiment improved more-than-expected in October, rising to the highest level since April 2010.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose by 3.2 points to hit 52.8 in October from September’s reading of 49.6. Analysts had expected an unchanged reading.
The dollar was also higher against the pound, with GBP/USD falling 0.20% to 1.5950.
In the U.K. data on Tuesday showed that consumer price inflation accelerated 2.7% on a year-over-year basis last month, unchanged from August and was 0.4% higher from a month earlier.
The dollar was close to one-month highs against the Swiss franc, with USD/CHF advancing 0.58% to 0.9154.
Elsewhere, the greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD climbing 0.45% to 0.9529, NZD/USD rising 0.24% to 0.8378 and USD/CAD easing up 0.13% to trade at 10367.
The Australian dollar strengthened after minutes from the Reserve Bank of Australia's October meeting indicated that the bank is in no hurry to cut interest rates further, saying that previous rate cuts are still affecting the nation's economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.43% to 80.71.
House Republicans were expected to outline plans to pass their own bill to reopen the government and increase the government borrowing limit later Tuesday, rejecting the possible deal being negotiated in the Senate.