NEW YORK, May 30 (Xinhua) — The U.S. dollar weakened on Tuesday as merchants waited for the vote on the debt ceiling deal in Congress.
The dollar index, which measures the dollar towards six main friends, fell 0.10 p.c to 104.1665 in late buying and selling.
Although there was some progress by means of a deal, some Republicans said that they might resist the deal inside the Republican-dominated House.
In addition to the debt negotiations, the market has refocused on inflation.
U.S. Consumer Confidence Index in May slowed to 102.3 from 103.7 in April, however greater than forecast consensus of 100, based on information issued by The Conference Board on Tuesday.
“Consumer confidence declined in May as consumers’ view of current conditions became somewhat less upbeat while their expectations remained gloomy,” stated Ataman Ozyildirim, senior director of economics at The Conference Board.
The report confirmed that Americans’ inflation expectations stay elevated however steady at a 6.1 p.c common over the subsequent 12 months.
High inflation most likely will not dissipate rapidly barring a sharper slowdown within the U.S. financial system, stated Thomas Barkin, president of the Federal Reserve Bank of Richmond on Tuesday.
“It is going to be more stubborn than many people would hope. There is a lot of uncertainty of where rates need to go,” stated Barkin, although he known as the present rate of interest stage “restrictive.”
The euro managed to rebound from multi-week lows regardless of the disappointing financial sentiment within the euro zone for May, which decreased to 96.5 from 99 in April.
In late New York buying and selling, the euro rose to 1.0719 {dollars} from 1.0709 {dollars} within the earlier session, and the British pound was as much as 1.2392 {dollars} from 1.2357 U.S. {dollars} within the earlier session.
The U.S. dollar purchased 139.8380 Japanese yen, decrease than 140.3940 Japanese yen of the earlier session. The U.S. dollar rose to 0.9062 Swiss francs from 0.9041 Swiss francs, and it rose to 1.3602 Canadian {dollars} from 1.3593 Canadian {dollars}. The U.S. dollar rose to 10.8802 Swedish Krona from 10.8185 Swedish Krona.