The continuous and still unsolved problems regarding the US debt limit have caused the nation’s currency to hit new all time low levels against competitive currencies such as the Swiss Franc, which has recently had a great evolution on the trading market. The Australian dollar is another currency which has managed to score new gains against the USD for the fifth day in a row today. This signals the fact that the issue related to the debt ceiling is of a really great importance and that the US authorities would better find a solution to it quickly if they do not want their currency to fall even more.
The world’s largest economy is now faced with the possibility of being downgraded to the default level, which would have major negative impacts upon the US economy. In this situation, traders no longer prefer the US Dollar as the safe-haven currency to turn to each time there is uncertainty on Read more »