The dollar rose on Wednesday, benefiting from its status as a safe haven amid the possibility of a debt default in the United States. This comes as traders reduced their bets that the Federal Reserve would soon cut interest rates following the announcement of consumer spending data. U.S. President Joe Biden and Republican House Speaker Kevin McCarthy are nearing an agreement on raising the U.S. debt ceiling, but no concrete deal has been reached yet.
The dollar index climbed 0.3% to 102.96 against a basket of major currencies, marking its highest level since early April. The dollar gained 0.4% against the Japanese yen, reaching its highest point in two weeks at 136.99 yen, and rose 0.5% against the British pound to 1.2422 dollars, which is the highest since April 26. The New Zealand dollar remained generally stable at 0.6232 dollars.
The euro fell 0.3% to its lowest level in six weeks against the U.S. dollar at 1.0831 dollars. The Turkish lira hit a ten-week low at 19.75 against the dollar.
