SINGAPORE : The dollar weakened broadly on Wednesday after U.S.
President Joe Biden and top lawmakers failed to break a deadlock on the debt ceiling crisis, though currency moves were marginal amid caution ahead of U.S. inflation data later in the day.
Biden and House of Representatives Speaker Kevin McCarthy remained divided over raising the $31.4 trillion U.S. debt limit following talks on Tuesday, with just weeks to go before the United States may be forced into an unprecedented default.
The two, however, agreed to
further talks and committed their aides to daily discussions about areas of possible agreement. Biden, McCarthy and the three other top congressional leaders are set to meet again on Friday.
“So that means there could be some more volatility in markets … and I think the dollar could weaken even further, as we have seen in the past.”
Against a basket of currencies, the U.S. dollar index was last 0.07 per cent lower at 101.55.
Source: Reuters
