The US dollar fluctuated today after lawmakers voted to remove the debt ceiling temporary. The debt ceiling issue was spoiling the traders’ mood and without it traders felt confident enough to part with the dollar. Yet not all news was good and that allowed the greenback to retain some of its strength.
US politicians voted in Washington today to remove the cap on borrowing as they are seeking ways to trim spending. The measure is temporary, but should give time for finding a cure for the problems of the US economy. Hopes for resolution of the debt issue decreased demand for the safety of the dollar.
Yet the greenback received support from World Economic Outlook of the International Monetary Fund. The IMF revised its projection for economic growth this year from 3.6 percent down to 3.5 percent. On top of that, Europe’s economy is expected to extend its decline, while previously it was expected to step on the path to recovery.
EUR/USD traded at 1.3317 as of 22:08 GMT today after opening at 1.3322. GBP/USD was up a little from 1.5836 to 1.5842. USD/JPY traded at 88.60 after the drop from 88.69 to 88.05.
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