The dollar hit a two-week high of 136.69 yen due to a safety bid as the US approached its borrowing limit, while strong economic data diminished market expectations of immediate rate cuts. Analysts forecast that the dollar would continue to rise if further rate cuts were taken off the table. Meanwhile, President Joe Biden has edged closer to a deal with Republican Kevin McCarthy to prevent a US debt default. Japanese growth figures beat market expectations, providing stability to the yen, which had been falling as US yields drove the dollar up.
