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Analysts split on US debt talks’ impact on US dollar; ‘no deal’ could have unprecedented effects

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Yong Jun Yuan

Yong Jun Yuan

Published Mon, May 22, 2023 · 05:26 PM
    • Analysts believe that a default on US debt would be unprecedented and unpredictable.
    • Analysts believe that a default on US debt would be unprecedented and unpredictable. PHOTO: REUTERS

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    AS THE US debt ceiling talks edge towards the so-called “X-date” of Jun 1, foreign exchange analysts expect that continued uncertainty without a deal could mean a strengthening of the US dollar and weakening of the Singapore dollar in the near term.

    Swissquote Bank senior analyst Ipek Ozkardeskaya said in a note on Monday (May 22): “The safe-haven demand due to the debt-ceiling saga is one of the reasons why the US dollar saw inflows over the past couple of weeks.”

    Meanwhile, the US dollar/Singapore dollar pair is near the top end of its two-month range.

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