Dollar ascendant amid resilient US economy, haven demand

The US dollar rose to a two-month high against the euro and a six-month peak vs the yen on the back of a robust economy leading dealers to scale back the bets on rate reductions this year. The dollar has also been buoyed by demand for safe havens paradoxically as the US debt ceiling impasse threatens a catastrophic default as soon as 1 June when the Treasury has warned it won’t be able to pay all bills. Fitch placed the US’s “AAA” debt ratings on a negative watch yesterday intensifying fears of an impending crisis.