Dollar on defensive after dovish Powell, debt ceiling setback

The US dollar faced losses against both the yen and euro, with negotiations over the US debt ceiling causing uncertainty. At the same time, Federal Reserve chair Jerome Powell’s stated preference to slow its rate hikes, combined with ongoing European Central Bank resolve on inflation, added pressure on the US dollar. Investors are now waiting for the US President and House Republican Speaker to meet today following failed talks on Friday, which have dampened expectations on a good outcome for the US budget.