The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
DOWNLOAD
grocery-2-aa
Economic Updates
Inflation Update: BSP poised for a string of rate cuts as inflation cools
DOWNLOAD
View all Reports
Metrobank.com.ph Contact Us
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • No Relief from Deficit Spending Yet

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph Contact Us
Access Exclusive Content Login to Wealth Manager
Search
The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
May 8, 2025 DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
May 8, 2025 DOWNLOAD
grocery-2-aa
Economic Updates
Inflation Update: BSP poised for a string of rate cuts as inflation cools
May 6, 2025 DOWNLOAD
View all Reports
Currencies 3 MIN READ

Dollar higher as US debt ceiling concerns keep traders nervous

May 23, 2023By Reuters
Related Articles
Philippine c.bank to match Fed's 75 bps rate hike on Nov. 17 November 3, 2022 Stocks tumble on inflation fears, Treasury yields jump May 6, 2022 FX interventions to curb dollar strength feed its rise July 12, 2022

NEW YORK, May 23 (Reuters) – The U.S. dollar hit a two-month high against a basket of currencies on Tuesday as a lack of progress in talks over increasing the U.S. debt limit hurt investors’ appetite for risk-taking.

Representatives of President Joe Biden and congressional Republicans ended another round of debt ceiling talks
on Tuesday with no signs of progress as the deadline to raise the government’s $31.4 trillion borrowing limit or risk default ticked closer.

“I think the dollar saw a modest boost today as stocks have declined, mostly due to the lack of progress on the debt ceiling deal,” said John Doyle, vice president of trading and dealing at Monex USA.

While most market participants expect a deal eventually, the delay in getting it done was keeping traders nervous, Doyle said.

Meanwhile, better-than-expected economic data and hawkish comments from regional Fed presidents including James Bullard and Neel Kashkari brought the possibility of further rate increases, also supporting the greenback.

The dollar index =USD, which measures the U.S. currency against a basket of major peers, reached 103.65, the highest since March 20, and was last at 103.55.

The greenback also rose to 138.91 against the Japanese yen JPY=EBS, the highest since Nov. 30, before falling back to 138.57.

“The focus is slowly going back towards inflation and all this hawkish Fed speak we’ve been getting,” said Edward Moya, senior market analyst at OANDA in New York.

“We’re probably looking at a market that is repositioning itself for a little bit more dollar strength here as these Fed rate cut bets get pushed back a little bit further and higher for longer.”

The more hawkish tilt this week by Fed officials comes after comments by Fed Chair Jerome Powell on Friday were viewed as dovish.

Powell said on Friday that it is still unclear if rates will need to rise further, as central bank officials balance uncertainty about the impact of past hikes in borrowing costs and recent bank credit tightening with the fact that inflation is proving hard to control.

Moya noted that minutes from the Fed’s May meeting due on Wednesday will be watched for any further signs of whether the Fed is likely so pause its rate hikes next month.

Traders have ramped up bets that the Fed funds rate will stay elevated, with markets pricing in almost a 30% chance of a rate hike in June and the Fed funds rate seen at about 4.75% in December.

Data on Tuesday showed that sales of new U.S. single-family homes
jumped to a 13-month high in April
. S&P Global’s flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, also climbed to a reading of 54.5 this month. That was the highest level since April 2022 and followed a final reading of 53.4 in April.

(Additional reporting by Samuel Indyk in London; Editing by Alison Williams and Andrea Ricci)

This article originally appeared on reuters.com

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Read this content. Log in or sign up.

​If you are an investor with us, log in first to your Metrobank Wealth Manager account. ​

If you are not yet a client, we can help you by clicking the SIGN UP button. ​

Login Sign Up