The dollar held firm on Tuesday, hitting a two-week high against the yen as top U.S. senators signalled they could soon reach a bipartisan deal to reopen the government and avert an immediate debt default.
Moves in major currencies were mostly modest, however, as investors remained wary of further political bickering. The exception was the Australian dollar, which jumped to a four-month high, getting an extra lift from meeting minutes showing Australia’s central bank was in no hurry to cut interest rates.
“Excessive pessimism about the U.S. has receded,” said Kyosuke Suzuki, director of forex at Societe Generale. “People have been building dollar long positions, giving consideration to the risk of not having dollars when a deal will eventually be signed.”
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015