Dollar Gains Against Major Counterparts
(RTTNews) - The U.S. dollar climbed higher against most of its major rivals on Tuesday amid concerns over a standoff in debt ceiling talks between the White House and House Republicans, and on speculation interest rates will remain higher for longer than earlier thought.
U.S. President Joe Biden and House Speaker Kevin McCarthy said they held productive talks on Monday but there was no agreement on how to raise the government's $31.4 trillion debt ceiling.
"While there are areas of disagreement, the Speaker and I, and his lead negotiators Chairman McHenry and Congressman Graves, and our staffs will continue to discuss the path forward," Biden said.
On the U.S. economic front, the S&P Global US Composite PMI rose to 54.5 in May 2023, up from 53.4 the month before, a preliminary estimate showed. The latest reading signaled the fastest pace of expansion in the country's private sector since April 2022.
The S&P Global Flash US Manufacturing PMI declined to 48.5 in May of 2023 from 50.2 in April, well below forecasts of 50, preliminary estimates showed.
The S&P Global US Services PMI increased to 55.1 in May 2023, up from 53.6 the month before and well above market expectations of 52.6, a preliminary estimate showed.
Data from the Commerce Department showed new home sales in the U.S. jumped by 4.1% to an annual rate of 683,000 in April after surging by 4% to a revised rate of 656,000 in March.
Economists had expected new home sales to decrease to an annual rate of 670,000 from the 683,000 originally reported for the previous month.
The dollar index surged to 103.65, before asing slightly to 103.56, up 0.35% from the previous close.
Against the Euro, the dollar firmed to 1.0773, from 1.0813. The dollar is up against Pound Sterling at 1.2417.
Against the Japanese currency, the dollar is little changed at 138.59 yen. Against the Aussie, the dollar is trading at 0.6609, gaining from 0.6651.
The Swiss franc is weak at 0.9015 a dollar, drifting down from 0.8979. The Loonie is down slightly at 1.3503 a dollar.
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