The unsolved situation in which the US Dollar continues to be trapped due to the crisis caused by the debt-limit is likely to cause the US currency to fall some more against its major counterparts. The deadline for the downgrading of the US credit rate rating is to be due on the 2nd of August and the lawmakers have not yet reached a solution.
This has caused the Dow Jones Industrial Average fall by 4.2 percent, while the Dow Jones FXCM Dollar Index decreased by 1.2 percent. As the situation has been tensed for quite a while now and the US Congress and the US President have not yet managed to take a decision, traders fear that the situation will continue as such, causing the rating to be downgraded, which would make the US Dollar fall behind expectations. The country is on the verge of running short of funds and becoming insolvent. The volatility of the US Read more »