The US dollar varied against major currencies, with the opening of the weekly trading, while the main stock indices on Wall Street recorded mixed trading in the pre-market trading period today. The pressure on the dollar continued since last week, after data revealed a decline in inflation in the United States of America, especially after data on the consumer price index, which recorded a decline to 6.5% in December, compared to 7.1% recorded in November. Other data revealed a decline in the price index. Producers rose 0.5% in December, versus estimates for a 0.1% decline. These data give the possibility of the Monetary Policy Board in the United States of America to reduce the pace of raising interest rates, as previously announced by a number of Federal Reserve officials. The successive increases in US interest rates were considered the first factor in the rise of the US currency for most of the past year.
Yellen warns of a global financial crisis because of the debt ceiling
In the meantime, investors followed the statements of US Treasury Secretary Janet Yellen that failure to reach an agreement to raise the US debt ceiling will reflect negatively on the economy in the United States and the world, and Yellen added that this failure may cause a recession and crisis on the economy. global scale.
In detail, US Treasury Secretary Janet Yellen stressed on Friday that the inability of Congress to reach a consensus on the debt ceiling could push the US economy into a tailspin that could lead to a global financial crisis. Yellen said in televised remarks: “This will certainly undermine the role of the dollar as a reserve currency used in transactions all over the world. Americans will lose a lot of people and their jobs will certainly increase borrowing costs.”
The debt ceiling reached $31.4 trillion the day before, forcing the Treasury Department to take “extraordinary measures” by halting investments in two government pension funds.
The divergence of the dollar trading against the major currencies
The dollar index fell slightly by 0.01% to trade at 101.9861. As the euro rose against the US dollar by 0.17%, to trade at 1.08752 levels. The US dollar also fell against its Canadian counterpart, by 0.08%, to trade at 1.33708 levels, at exactly 14:44 pm GMT.
On the other hand, the US dollar rose against the Japanese yen by 0.55%, to trade at 130.2955. The US dollar also rose against the Swiss franc, by 0.22%, to trade at 0.92231. Finally, the British pound fell against the US dollar by 0.25%, bringing the pound dollar pair to 1.23633. This is at exactly 14:48 pm GMT.