![]() ![]() This suggested that consumer spending likely remained strong early in the second quarter. retail sales rose less than expected in April, but details showed that the underlying trend remained solid. In afternoon trading, the euro slipped 0.1% versus the dollar to $1.0858, while sterling fell 0.4% to $1.2478. I would say it's very hard to predict what will happen other than volatility might be dramatic." "So it's very difficult to suggest that we would have a dollar rally in that deleveraging. "But you don't want Treasury bills," Merk said. dollar tends to rally in times when there is financial stress and in periods of deleveraging as investors scramble to unwind risky bets. The question is in a default, can you have Treasuries as collateral in a world that's highly levered?" said Axel Merk, president and chief investment officer at Merk Investments in Palo Alto, California. "Clearly, to the extent that there is a default risk, it would be chaotic. But the meeting ended on an upbeat and unexpected note as McCarthy, coming out of the meeting with Biden and other congressional leaders, said, "It is possible to get a deal by the end of the week."īoth parties agree on the need for urgent action. debt ceiling negotiations ended on Tuesday after less than an hour, as the looming fear of an unprecedented American debt default prompted Biden to cut short an upcoming Asia trip. Against the yen, the greenback rose 0.2% to 136.315 yenĭemocratic President Joe Biden and top congressional Republican Kevin McCarthy's U.S. The dollar index, a measure of the greenback's value against six major currencies, was up 0.2% on the day at 102.61. TOKYO, May 16 (Reuters) - The dollar edged higher on Tuesday in choppy trading, with no clear direction, as investors kept an eye on debt ceiling talks to avert a possible default that could reverberate across asset markets and damage confidence in the world's largest economy.
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