Latest Stories

Dollar mixed as US budget talks bog down


NEW YORK CITY—The dollar traded mixed Tuesday amid bogged-down US budget and debt ceiling talks that prompted Fitch to warn it could downgrade the US AAA credit rating.

The euro was trading at $1.3525 around 2100 GMT, down from $1.3559 at the same time Monday.

The Japanese currency, often considered a safe haven in times of uncertainty, firmed. The dollar fell to 98.16 yen from 98.67 yen Monday and the euro tumbled to 132.77 yen from 133.79 yen.

Financial markets were on tenterhooks as Washington politicians remained deadlocked over a deal to reopen the federal government and avoid default on its debts.

The US Treasury has warned that if Congress fails to lift the $17.6 trillion debt ceiling by Thursday, it will lose its ability to borrow and could run out of cash to pay all its obligations.

After the US stock markets closed, Fitch announced it had placed the United States’s AAA credit rating on watch for a downgrade. It said the prolonged debt-ceiling negotiations risk “undermining confidence in the role of the US dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the US.”

Tuesday marked the 15th day of a partial federal government as the White House and Republicans battled over funding for the 2014 fiscal year that began Oct. 1.

“For the past two weeks, investors have been hopeful that Congress will pass a bill that will avoid the first-ever default,” said Kathy Lien of BK Asset Management.

“But 15 days into the US government shutdown and with just under 36 hours to go before the Treasury reaches its borrowing limit, their optimism is fading quickly.”

“Many investors fear that if the US defaults on its debt, the dollar will collapse,” she said.

The dollar strengthened against the Swiss currency, to 0.9122 franc from 0.9102 franc Monday.

The pound rose to $1.5997 from $1.5980.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: dollar , Forex , US

  • Cool_ka_lang


Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Kim Henares needs a reprimand, says Cayetano
  • AFP denies hand in disappearance of Tiamzon’s gardener
  • PH gov’t to verify MILF presence in Basilan clash
  • Padaca ‘eager’ to air side on trial over graft, malversation raps
  • DPWH to favor road rehab over preventive maintenance in next 2 years
  • Sports

  • Fielder ends HR drought, Rangers beat Mariners 5-0
  • Power Pinoys salvage 7th place in Asian men’s volley club championship
  • Knicks prevent Nets from clinching fifth seed
  • Arsenal beats West Ham 3-1 in Premier League
  • Memorial service marks Hillsborough anniversary
  • Lifestyle

  • Celebrate Easter Sunday at Buddha-Bar Manila
  • Moriones feast: A slow, steady transformation
  • Weaving ‘palaspas’ a tradition kept alive in Tayabas City
  • Finalists announced for best translated books
  • Summer treat for your aspiring astronomers
  • Entertainment

  • Mommy Dionisia Pacquiao’s greatest hits
  • Deniece Cornejo posts bail—report
  • Miley Cyrus hospitalized, cancels US concert
  • Otaku Summer Jam 2014: Summer’s hottest J-rock/Cosplay event
  • 2NE1 returns to Manila with “All Or Nothing” Tour
  • Business

  • I-Remit teams up with Lakhoo for remittances from Oman
  • Megawide nets P1.4 B in 2013
  • Longer TRO sought on rate hike
  • Make a stylish statement with the all-new Yaris
  • Hearing set in Olarte case
  • Technology

  • Smart phone apps and sites perfect for the Holy Week
  • Tech company: Change passwords or suffer ‘Heartbleed’
  • Filling the digital talent gap
  • SSS to shut down website for Holy Week
  • Another reason to quit social media this Holy Week: your safety
  • Opinion

  • We may never know
  • Couple of things
  • Mommy D’s magic
  • Stop bizarre and bloody Good Friday rituals
  • Holy Week taboos
  • Global Nation

  • 2 PCG men ordered arrested over Balintang Channel shooting
  • US Embassy closed on Holy Thursday, Good Friday
  • Relief worker draws inspiration from helping Yolanda victims
  • Philippines says peace pact should hold despite clashes
  • No travel restrictions to Middle East amid MERS-CoV scare
  • Marketplace