The dollar rose against the yen and the euro yesterday after an early fall, but still remained low against all currencies. As the deadloack within the US Parliament continued yesterday people started to buy dollar as a safe haven asset, but the dollar's weakness may persist even if a solution is agreed upon since the rating agencies may not be satisfied on how long the US government would be able to sustain its financies. A downgrade from AAA rating, could mean a weak dollar in the long run, which eventually would effect the US economy and also Asian markets and countries could suffer from a slowdown in economies and many more economic problems.
Just hope a solution is found, which solves the purpose in the long run, if the dollar's valuation is effected it could slowly effect the rest of the world.
USD Price at posting:
$9.02 Sentiment: None Disclosure: Held
