Investing.com - The dollar traded mixed to higher against most major currencies on Wednesday amid fresh hopes that lawmakers will reach a deal to extend the government's debt ceiling and avoid default.
The U.S. is due to hit its debt ceiling on Thursday, after which Washington won't be able to guarantee all of its obligations.
In U.S. trading on Monday, EUR/USD was up 0.01% at 1.3526.
Senate Majority Leader Harry Reid, a Democrat, and the Senate's top Republican, Mitch McConnell, said earlier they agreed on a plan to end the fiscal impasse needed to reopen the government as well as extend Washington's borrowing authority to avoid defaults.
The budget deal will reportedly give the Treasury the authority to continue borrowing through Feb. 7 and fund the government through Jan. 15, but will also add in spending cuts, which appeased Republicans.
The Senate is expect to approve the deal later today followed by the House of Representatives afterwards.
House Speaker John Boehner said earlier the House would not block the compromise.
U.S. credit ratings agency Fitch Ratings on Tuesday placed the U.S. 'AAA' debt on "rating watch negative" due to congressional inability to pass a spending package.
Elsewhere, the Federal Reserve reported in its Beige Book, which analyzes current economic conditions, that the U.S. economy expanded at a moderate pace from September into October, though the U.S. central bank said fiscal uncertainty had been dampening recovery.
The dollar did see headwinds, however, as hopes for an end to U.S. fiscal uncertainties enticed investors out of safe-haven greenback positions and into equities.
The greenback was up against the pound, with GBP/USD down 0.34% at 1.5942.
The Office for National Statistics said that the U.K. claimant count fell by 41,700 in September, outstripping expectations for a decline of 25,000 people.
The rate of unemployment held steady at 7.7% in August, in line with expectations and unchanged from July.
The dollar was up against the yen, with USD/JPY up 0.65% at 98.82, and up against the Swiss franc, with USD/CHF up 0.16% at 0.9137.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.43% at 1.0335, AUD/USD up 0.22% at 0.9547 and NZD/USD trading up 0.53% at 0.8424.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.01% at 80.60.
On Thursday, the U.S. is to publish the weekly government report on initial jobless claims, as well as data on manufacturing activity from the Philly Fed.
The U.S. is due to hit its debt ceiling on Thursday, after which Washington won't be able to guarantee all of its obligations.
In U.S. trading on Monday, EUR/USD was up 0.01% at 1.3526.
Senate Majority Leader Harry Reid, a Democrat, and the Senate's top Republican, Mitch McConnell, said earlier they agreed on a plan to end the fiscal impasse needed to reopen the government as well as extend Washington's borrowing authority to avoid defaults.
The budget deal will reportedly give the Treasury the authority to continue borrowing through Feb. 7 and fund the government through Jan. 15, but will also add in spending cuts, which appeased Republicans.
The Senate is expect to approve the deal later today followed by the House of Representatives afterwards.
House Speaker John Boehner said earlier the House would not block the compromise.
U.S. credit ratings agency Fitch Ratings on Tuesday placed the U.S. 'AAA' debt on "rating watch negative" due to congressional inability to pass a spending package.
Elsewhere, the Federal Reserve reported in its Beige Book, which analyzes current economic conditions, that the U.S. economy expanded at a moderate pace from September into October, though the U.S. central bank said fiscal uncertainty had been dampening recovery.
The dollar did see headwinds, however, as hopes for an end to U.S. fiscal uncertainties enticed investors out of safe-haven greenback positions and into equities.
The greenback was up against the pound, with GBP/USD down 0.34% at 1.5942.
The Office for National Statistics said that the U.K. claimant count fell by 41,700 in September, outstripping expectations for a decline of 25,000 people.
The rate of unemployment held steady at 7.7% in August, in line with expectations and unchanged from July.
The dollar was up against the yen, with USD/JPY up 0.65% at 98.82, and up against the Swiss franc, with USD/CHF up 0.16% at 0.9137.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.43% at 1.0335, AUD/USD up 0.22% at 0.9547 and NZD/USD trading up 0.53% at 0.8424.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.01% at 80.60.
On Thursday, the U.S. is to publish the weekly government report on initial jobless claims, as well as data on manufacturing activity from the Philly Fed.