Sharjah24 - Reuters: After a deal to raise the U.S. debt ceiling improved risk sentiment, the U.S. dollar declined on Tuesday versus a basket of other currencies, but it still close to a two-month high. However, the accord may have trouble getting through Congress.
The dollar index, which measures the U.S. currency against six major peers, fell 0.02% to 104.28, not far from the two-month high of 104.42 it touched on Friday. The index is set to end the month with a gain of 2.5%.
A handful of hard-right Republican lawmakers said on Monday they would oppose a deal to raise the United States' $31.4 trillion debt ceiling.
The opposition highlights the hurdles that Democratic President Joe Biden and top congressional Republican Kevin McCarthy will face to get the package through the Republican-controlled House of Representatives and Democratic-controlled Senate before the limit is reached, likely by next Monday.
"It is as if the two political parties in the U.S. are playing a game of chicken and daring the other side to capitulate," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
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