The U.S. dollar fell in late trading on Friday as investors bet on a less hawkish Fed and U.S. debt limit negotiations suddenly came to a halt.
The dollar index, which measures the greenback against six major peers, fell 0.37 percent at 103.1924 in late trading.
In late New York trading, the euro increased to 1.0807 dollars from 1.0767 dollars in the previous session, and the British pound was up to 1.2448 dollars from 1.2404 U.S. dollars in the previous session.
The U.S. dollar bought 138.0760 Japanese yen, lower than 138.6390 Japanese yen of the previous session. The U.S. dollar fell to 0.8998 Swiss francs from 0.9050 Swiss francs, and it fell to 1.3509 Canadian dollars from 1.3510 Canadian dollars. The U.S. dollar decreased to 10.5292 Swedish Krona from 10.5839 Swedish Krona.
Fed Chair Jerome Powell commented on Friday that the situation in the banking system was under control and Fed would not have to raise rates as much as previously expected.
It’s reported that high-stakes talks over raising the U.S. government debt limit abruptly came to a halt on Friday after Republican negotiators walked out of the room.
It is unclear if the negotiations will resume this weekend.
“Until people are willing to have reasonable conversations about how you can actually move forward and do the right thing, then we’re not going to sit here and talk to ourselves,” Garret Graves, Republican representative from Louisiana and whom House Speaker Kevin McCarthy tapped to be his lead negotiator, told reporters.
Statistics Canada reported Friday that the Canadian retail sales fell by 1.4 percent in March month on month, in line with economists’ expectation. The reading fell by 0.2 percent in February.
