Investing.com - The dollar slipped lower against the other main currencies on Monday as concerns over the threat of a U.S. default weighed after weekend talks in Washington failed to resolve political deadlock over the U.S budget and debt ceiling.
During European morning trade, the dollar was lower against the yen, with USD/JPY down 0.26% to 98.29.
Over the weekend, President Barack Obama rejected Republican proposals for a short-term debt ceiling increase, fuelling concerns that a deal to raise the government borrowing limit would not be struck ahead of Thursday’s deadline to avert an unprecedented U.S. 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 edged higher against the dollar, with EUR/USD easing up 0.10% to 1.3553.
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 slipped lower against the pound and the Swiss franc, with GBP/USD inching up 0.08 % to 1.5958 and USD/CHF sliding 0.14% to 0.9109.
Elsewhere, the greenback was mixed to lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD edging up 0.02% to 0.9467, NZD/USD up 0.50% to 0.8363 and USD/CAD slipping 0.11% to trade at 1.0346.
The growth linked Australian dollar came under pressure 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, dipped 0.06% to 80.44.
During European morning trade, the dollar was lower against the yen, with USD/JPY down 0.26% to 98.29.
Over the weekend, President Barack Obama rejected Republican proposals for a short-term debt ceiling increase, fuelling concerns that a deal to raise the government borrowing limit would not be struck ahead of Thursday’s deadline to avert an unprecedented U.S. 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 edged higher against the dollar, with EUR/USD easing up 0.10% to 1.3553.
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 slipped lower against the pound and the Swiss franc, with GBP/USD inching up 0.08 % to 1.5958 and USD/CHF sliding 0.14% to 0.9109.
Elsewhere, the greenback was mixed to lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD edging up 0.02% to 0.9467, NZD/USD up 0.50% to 0.8363 and USD/CAD slipping 0.11% to trade at 1.0346.
The growth linked Australian dollar came under pressure 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, dipped 0.06% to 80.44.