(RTTNews) - The dollar remained under pressure versus other safe haven currencies on Friday, edging toward a record low against the yen amid rising concerns that U.S. makers will fail to lift the nation's debt ceiling.
House Republicans stand in the way of a compromise that would avert a crisis in the markets next week. If Congress fails to raise the borrowing limit, the U.S. is likely to be considered in default and will lose its AAA credit rating.
The dollar was a whisker from this week's record low against the Swiss franc, hovering near CHF 0.80. The buck weakened to Y77.44 overnight against the yen, nearing a record low of Y76.30 set back in March.
On the other hand, the buck gained against the euro and sterling.
Eurozone annual inflation slowed to 2.5 percent in July, flash estimate published by Eurostat, the statistical office of the European Union showed Friday.
The dollar rose to $1.4240 against the euro, up 3 cents from its weekly lows. Early gains took the dollar to $1.6260 versus the sterling, up more than a penny from the same time yesterday.
An index measuring consumer confidence in the United Kingdom came in with a score of -30 in July, statistics company GfK said on Friday, falling to a two-year low. The July reading missed expectations for a score of -26 following the -25 reading in June, thanks to declines in all five major categories.
The buck improved to within five cents of parity versus its strong Canadian counterpart.
Looking at the U.S. economic calendar, the Bureau of Economic Analysis is due to release its advance estimate of second quarter GDP at 8:30 am ET. Economists expect GDP growth of 1.9 percent for the quarter, the same pace as in the previous quarter.
The results of the Institute of Supply Management-Chicago's business survey for July are scheduled to be released at 9:45 am ET. Economists expect the business barometer index based on the survey to remain unchanged at 61.1.
At 9:55 am ET, the Reuters/University of Michigan's final report on the consumer sentiment index for July is scheduled to be released. Economists expect the index to be revised up to 64 from the mid-month reading of 63.8.
