Investing.com - The dollar was lower against the other major currencies on Monday after a breakdown in U.S. talks on a deal to raise the debt ceiling over the weekend added to concerns over the risk of a possible U.S. debt default.
During U.S. morning trade, the dollar was weaker against the yen, with USD/JPY down 0.44% to 98.12.
The greenback came under pressure after President Barack Obama rejected Republican proposals for a short-term debt ceiling increase over the weekend.
If a deal to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
World finance ministers and central bank heads in Washington for the annual meeting of the International Monetary Fund and World Bank over the weekend called for “urgent action” to break the deadlock, warning of the negative impact on the global economic recovery.
The euro moved higher against the dollar, with EUR/USD rising 0.34% to 1.3586.
In the euro zone, data on Monday showed that industrial production rose 1% in August, coming in above expectations for a 0.8% increase.
The dollar extended losses against the pound and the Swiss franc, with GBP/USD climbing 0.43% to 1.6014 and USD/CHF down 0.56% to 0.9070.
Elsewhere, the greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD rising 0.16% to 0.9480, NZD/USD up 0.50% to 0.8362 and USD/CAD dipping 0.10% to trade at 1.0347.
The growth linked Australian dollar came under pressure earlier after Chinese trade data over the weekend showed that exports unexpectedly slowed in September, sparking renewed concerns over the outlook for global demand.
Meanwhile, data released on Monday showed that home loans in Australia fell 3.9% in August, more than forecasts for a 2.5% decline.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.32% to 80.24.
During U.S. morning trade, the dollar was weaker against the yen, with USD/JPY down 0.44% to 98.12.
The greenback came under pressure after President Barack Obama rejected Republican proposals for a short-term debt ceiling increase over the weekend.
If a deal to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
World finance ministers and central bank heads in Washington for the annual meeting of the International Monetary Fund and World Bank over the weekend called for “urgent action” to break the deadlock, warning of the negative impact on the global economic recovery.
The euro moved higher against the dollar, with EUR/USD rising 0.34% to 1.3586.
In the euro zone, data on Monday showed that industrial production rose 1% in August, coming in above expectations for a 0.8% increase.
The dollar extended losses against the pound and the Swiss franc, with GBP/USD climbing 0.43% to 1.6014 and USD/CHF down 0.56% to 0.9070.
Elsewhere, the greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD rising 0.16% to 0.9480, NZD/USD up 0.50% to 0.8362 and USD/CAD dipping 0.10% to trade at 1.0347.
The growth linked Australian dollar came under pressure earlier after Chinese trade data over the weekend showed that exports unexpectedly slowed in September, sparking renewed concerns over the outlook for global demand.
Meanwhile, data released on Monday showed that home loans in Australia fell 3.9% in August, more than forecasts for a 2.5% decline.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.32% to 80.24.