By Lisa Twaronite, MarketWatch
TOKYO (MarketWatch) — The dollar edged up against the euro Thursday and maintained gains against most other rivals, but upward momentum was quashed by uncertainty about ongoing U.S. debt-ceiling negotiations.
The U.S. dollar “has managed to retain the bulk of yesterday’s gains amid worsening risk appetite over debt on both sides of the Atlantic,” said Sue Trinh, currency strategist at RBC Capital Markets.
German Finance Minister Wolfgang Schaeuble reportedly said in a letter that “it would be a mistake to think that the crisis of trust in the euro area can be solved by a single summit,” reminding investors that the euro zone’s sovereign-debt problems aren’t over. Read more on comments from Germany's Schaeuble.
But the U.S. has sovereign debt woes of its own, with Washington lawmakers trying Wednesday to muster up support for rival versions of a plan to cut the deficit and raise the debt limit ahead of the Aug. 2 deadline, after which the government risks defaulting on its obligations. Read more on U.S. debt plans.
The dollar index DXY +0.04% , which tracks the U.S. unit’s performance against a basket of six other currencies, traded at 74.081, compared with 74.088 in late North American trading Wednesday.
The euro EURUSD -0.02% ticked down to $1.4360 from $1.4365 late Wednesday. See real-time currency quotes and tools.
But against the yen, the dollar USDJPY -0.23% traded at ¥77.78, down from ¥78.00 late Wednesday.
Japanese Economics Minister Kaoru Yosano was quoted as saying that currency intervention as big as ¥1 trillion-¥2 trillion would be difficult, according to Reuters, citing a local Jiji news agency report.
The report cited the governor of central Japan’s Aichi prefecture, who met with Yosano on a visit to Tokyo to urge the government to take steps to address recent sharp yen rises.
Against the Swiss franc, the dollar USDCHF +0.05% bought 80.11 centimes, compared with 80.39 centimes late Wednesday. There are 100 centimes in a Swiss franc.
The British pound GBPUSD -.00% bought $1.6327, down from $1.6321 late Wednesday.
The Australian dollar AUDUSD +0.20% changed hands at $1.1048, up from $1.1013 late Wednesday.
Lisa Twaronite is MarketWatch's Tokyo bureau chief.
