Investing.com - The U.S. dollar was mixed against its major counterparts Tuesday, as markets welcomed the passage of a final resolution to raise the country’s debt ceiling, but remained pessimistic on prospects for economic growth in the world’s largest economy.
In early Asian trade, the greenback was down against the euro, with EUR/USD easing 0.09% to hit 1.4191.
Earlier Tuesday, the U.S. Senate, by a 74 to 26 vote, approved a bill to increase the USD14.3 trillion debt limit by USD2.4 trillion. The Congressional Budget Office estimated that the measure would reduce deficits by USD2.1 trillion over the next ten years.
President Barack Obama then signed the bill into law, narrowly avoiding the August 2 deadline for the U.S. to default on its debt obligations.
But as markets digested the details of the bill, impending deep government spending cuts and the negative effects they may have on an already sluggish U.S. economy drew dealers away from riskier assets.
Wall Street suffered deep declines as the three major U.S. stock indexes extended losses for an eighth straight day, the longest losing streak since October 2008.
The Dow Jones Industrial Average slumped 2.2% to 11,866.62, its worst one-day drop since June 1. The Nasdaq Composite Index stumbled 2.8% to 2,669.24 and the S&P 500 retreated 2.6% to 1,254.05.
The greenback was up against the pound with GBP/USD slipping 0.02% to 1.6291.
The dollar gained ground against both the yen and the Swiss franc with USD/JPY advancing 0.08% to hit 77.21, and USD/CHF higher by 0.35% to hit 0.7650.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts with USD/CAD up 0.04% to hit 0.9618, AUD/USD up 0.09% to hit 1.0779 and NZD/USD lower by 0.31% to hit 0.8634.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.01% at 74.53.
The U.S. Labor Department was scheduled to release monthly figures on non-farm private employment during the session Wednesday.
In early Asian trade, the greenback was down against the euro, with EUR/USD easing 0.09% to hit 1.4191.
Earlier Tuesday, the U.S. Senate, by a 74 to 26 vote, approved a bill to increase the USD14.3 trillion debt limit by USD2.4 trillion. The Congressional Budget Office estimated that the measure would reduce deficits by USD2.1 trillion over the next ten years.
President Barack Obama then signed the bill into law, narrowly avoiding the August 2 deadline for the U.S. to default on its debt obligations.
But as markets digested the details of the bill, impending deep government spending cuts and the negative effects they may have on an already sluggish U.S. economy drew dealers away from riskier assets.
Wall Street suffered deep declines as the three major U.S. stock indexes extended losses for an eighth straight day, the longest losing streak since October 2008.
The Dow Jones Industrial Average slumped 2.2% to 11,866.62, its worst one-day drop since June 1. The Nasdaq Composite Index stumbled 2.8% to 2,669.24 and the S&P 500 retreated 2.6% to 1,254.05.
The greenback was up against the pound with GBP/USD slipping 0.02% to 1.6291.
The dollar gained ground against both the yen and the Swiss franc with USD/JPY advancing 0.08% to hit 77.21, and USD/CHF higher by 0.35% to hit 0.7650.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts with USD/CAD up 0.04% to hit 0.9618, AUD/USD up 0.09% to hit 1.0779 and NZD/USD lower by 0.31% to hit 0.8634.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.01% at 74.53.
The U.S. Labor Department was scheduled to release monthly figures on non-farm private employment during the session Wednesday.