The U.S. dollar fell against majors on Tuesday trading, especially safe havens, amid concerns U.S. officials will not reach an agreement regarding the raise of debt ceiling before an August 2 deadline.
Yesterday, the greenback showed a slight rise as it benefited from the jittery situation in the market yet with the escalation of the debt limit problem after Obama's announcements the dollar fell sharply against majors where it hit four month low against the yen and new record low versus the Swiss franc.
Also the dollar slipped against high-yielding currencies which dragged the dollar index to 73.65 compared with the day's opening level of 74.10.
President Obama warned that this may damage the economy, stating that if the ceiling is not increased before August 2 deep economic crisis will face the world's no.1 economy.
Meanwhile, the main highlight is on the U.S. as a downgrade in credit rating and/or default may be an outcome of further delay.
Concerning to the dollar-yen pair, it is showing decline on the daily basis, where the pair is hovering around 78.10 while it opened the day at 78.29, whilst the high was recorded at 78.64 and low is at 77.87.
The trading range for today is among key support at 76.75 and key resistance now at 79.55.
Despite the yen's advance against the dollar, it fell against other major currencies amid expectations the BoJ would intervene to prevent the yen from depreciating further as the Japanese economy is still weak and will not be able to bare the yen's drop.
Against the Swiss franc, the green currency is traded at 0.8034 after falling to a low of 0.7995, wherethe trading range for today is among the major support at 0.7830 and the major resistance at 0.8250.
Moreover, the euro rose against the dollar and yen after successful bond selling by the large debt-laden econmeis Italy and Spain where the former sold six month notes at the highest yield in almost three years while the later auctioned 2.89 billion euros ($4.2 billion)of three-month bills and six-month securities.
The euro, however, surrendered its earlier gains against the pound which advanced after a report showing that the British economy grew 0.2% in the second quarter, which came in line with median forecasts.
With regard the euro-pound pair, it is currently trading near the day's opening level at 0.8829 after falling from a high of 0.8882 while the day's low was depicted at 0.8820.
Trading range for the dayis among the major support at 0.8700 and the major resistance at 0.9000.