Investing.com - The U.S. dollar turned moderately higher against the other major currencies on Friday, as fresh U.S. debt concerns supported demand for the safe haven greenback, as did comments by St. Louis Federal Reserve Chairman James Bullard.
During U.S. morning trade, the dollar was steady against the euro, with EUR/USD easing 0.01% to 1.3528.
Market sentiment weakened as U.S. Republicans and Democrats were forced to quickly decide on how to continue funding the government and whether to increase the government's borrowing authority by raising the debt ceiling.
If President Barack Obama's administration and Republicans do not come to an agreement to raise the nation's borrowing cap before October, the U.S. Treasury may be able to avoid exceeding the USD16.7 trillion debt limit, which could send the country into default.
Separately, the greenback found some support after St. Louis Fed President James Bullard said on Friday that the U.S. central bank could taper its stimulus program during its October meeting.
The comments came after the Fed on Wednesday held back from reducing the USD85 billion pace of its monthly asset purchases.
In the euro zone, investors were eyeing the outcome of Germany's general election on Sunday., with Chancellor Angela Merkel looking to secure a third term.
The greenback edged higher against the pound, with GBP/USD slipping 0.12% to 1.6012.
Official data showed that U.K. public sector net borrowing rose less-than-expected in August, rising by GBP11.5 billion after a downwardly revised 1.1% decline the previous month. Analysts had expected public sector net borrowing to rise by GBP12 billion last month.
Elsewhere, the greenback was fractionally higher against the yen, with USD/JPY adding 0.07% to trade at 99.52, and steady against the Swiss franc, with USD/CHF inching 0.01% lower to 0.9105.
Earlier in the day, Bank of Japan Governor Haruhiko Kuroda reiterated his call for government efforts to bring its finances under control, saying that sustainable finances are a "indispensable" to achieve sustainable growth.
Speaking at a meeting in Tokyo, Kuroda offered few clues over whether he is planning to implement additional easing measures to mitigate the impact that an expected sales tax hike could have on Japan's economic recovery.
The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.20% to 1.0286, AUD/USD shedding 0.32% to 0.9410 and NZD/USD dipping 0.01% to 0.8376.
In a report, Statistics Canada said that core consumer price inflation, excluding the eight most volatile items, rose 0.2% in August, more than the expected 0.1% increase, after a flat reading the previous month.
Consumer price inflation in Canada was flat last month, confounding expectations for a 0.1% rise, after a 0.1% increase in July.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.08% to 80.55.
Trading volumes were expected to remain light on Friday, as no U.S. economic data was to be released throughout the session.
During U.S. morning trade, the dollar was steady against the euro, with EUR/USD easing 0.01% to 1.3528.
Market sentiment weakened as U.S. Republicans and Democrats were forced to quickly decide on how to continue funding the government and whether to increase the government's borrowing authority by raising the debt ceiling.
If President Barack Obama's administration and Republicans do not come to an agreement to raise the nation's borrowing cap before October, the U.S. Treasury may be able to avoid exceeding the USD16.7 trillion debt limit, which could send the country into default.
Separately, the greenback found some support after St. Louis Fed President James Bullard said on Friday that the U.S. central bank could taper its stimulus program during its October meeting.
The comments came after the Fed on Wednesday held back from reducing the USD85 billion pace of its monthly asset purchases.
In the euro zone, investors were eyeing the outcome of Germany's general election on Sunday., with Chancellor Angela Merkel looking to secure a third term.
The greenback edged higher against the pound, with GBP/USD slipping 0.12% to 1.6012.
Official data showed that U.K. public sector net borrowing rose less-than-expected in August, rising by GBP11.5 billion after a downwardly revised 1.1% decline the previous month. Analysts had expected public sector net borrowing to rise by GBP12 billion last month.
Elsewhere, the greenback was fractionally higher against the yen, with USD/JPY adding 0.07% to trade at 99.52, and steady against the Swiss franc, with USD/CHF inching 0.01% lower to 0.9105.
Earlier in the day, Bank of Japan Governor Haruhiko Kuroda reiterated his call for government efforts to bring its finances under control, saying that sustainable finances are a "indispensable" to achieve sustainable growth.
Speaking at a meeting in Tokyo, Kuroda offered few clues over whether he is planning to implement additional easing measures to mitigate the impact that an expected sales tax hike could have on Japan's economic recovery.
The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.20% to 1.0286, AUD/USD shedding 0.32% to 0.9410 and NZD/USD dipping 0.01% to 0.8376.
In a report, Statistics Canada said that core consumer price inflation, excluding the eight most volatile items, rose 0.2% in August, more than the expected 0.1% increase, after a flat reading the previous month.
Consumer price inflation in Canada was flat last month, confounding expectations for a 0.1% rise, after a 0.1% increase in July.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.08% to 80.55.
Trading volumes were expected to remain light on Friday, as no U.S. economic data was to be released throughout the session.