The dollar stabilized near its highest level in seven weeks today, Thursday, following positive signals from U.S. President Joe Biden and Republican House Speaker Kevin McCarthy regarding debt ceiling talks.
Biden and McCarthy confirmed yesterday, Wednesday, their intention to reach an agreement soon to raise the government debt ceiling of $31.4 trillion after agreeing the day before to engage in direct negotiations following months of stalemate.
A surprising rise in Treasury yields also supported the dollar's ascent, keeping the dollar index, which measures the U.S. currency against a basket of others, near a seven-week peak recorded in the previous session, reaching 102.86 in the latest trading.
The euro faced pressure, bringing it close to its lowest level in six weeks at $1.0841. The common currency hit $1.08105 yesterday, Wednesday, marking its lowest point since April 3.
Meanwhile, the Japanese yen reached 137.50 against the dollar in the latest trades, after declining nearly one percent yesterday, Wednesday.
