Stock Market Watch

Forex Market Update: Dollar Index Steady

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The dollar index held steady on Thursday after climbing to its two week high against major currencies in the previous session. New reports that congressional leaders are likely to agree to a stop-gap solution, which would allow the Treasury to raise its current borrowing limit, lent support to the U.S. dollar. A temporary solution would allow lawmakers to buy some more time to find a long-term solution for the debt-ceiling issue.

On Thursday GOP House leaders are scheduled to meet with President Obama to try resolve the impasse over the budget talks.

At last check, the Dollar Index, a measure on greenback’s performance vis-à-vis a basket of major traded currencies was mainly flat at 80.37.

The WSJ$ Index, whose indexing criteria is slightly broader, edged up 0.13% to 72.72

The support also came from the interest rates would spike which in turn favor the dollar due to interest-rate differentials.

“There have been some positive developments regarding the debt ceiling and while they may be short-term measures, they offer some relief to the dollar,” said Neil Mellor, currency strategist, Bank of New York Mellon, according to Reuters.

“The Fed minutes are also talking about tapering later this year, all of which is nudging markets to cover positions before the weekend,” added Mellor.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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