The US dollar rose slightly despite Trump's comments

24 Aug 2017 09:19 AM

The US dollar rose against most of the currencies on morning trading, as markets risk aversion followed the threat of US President Donald Trump to shut down the government and end the North American Trade Agreement.
Trump said on Tuesday in Arizona that he is willing to shut down the government to finance the wall between the United States and Mexico, comes a month before the deadline to raise the ceiling of the US debt or the announcement of default.
Fitch Ratings said failure to raise the debt ceiling in time would prompt it to reconsider the sovereign rating of the United States. The US dollar managed to offset its morning losses against the Japanese yen and rose strongly from its lowest level since Tuesday at 108.84 to trade currently at 109.35 levels.
Trump's threat to end the North American Free Trade Agreement also played a role in the weakness of the US dollar after the tripartite talks, which ended Sunday, failed to resolve differences. Another round of negotiations is scheduled for September and before the end of this year.
Today's markets are heading to Jackson Hole, where Janet Yellen, Governor of the Fed and Mario Draghi, Governor of the European Central Bank are both due to speak.

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