US Dollar Rises to Seven-Week High Amid Debt Ceiling Optimism and Economic Data

The US dollar reached a seven-week high after strong economic data reduced expectations of easing by the Federal Reserve and optimism grew about a US debt ceiling deal to avoid a potential default. The dollar index hit a new seven-week high of 103.38, and was last up 0.5% at 103.34 after the economic numbers. Traders are pricing in around a 20% chance that the Federal Reserve raises its interest rate at its June meeting. The focus was also on debt ceiling talks, with President Joe Biden and top US congressional Republican Kevin McCarthy determined to strike a deal soon.