The U.S. dollar slipped slightly in early European trading on Friday but remained close to a two-month high. Strong labor data and optimism regarding the avoidance of a U.S. debt default indicated that the Federal Reserve would maintain a tight monetary policy for a longer period.
China Standard Time 10:55 (GMT+8), the Dollar Index, which measures the performance of the greenback against a basket of six other currencies, decreased by 0.2% to 103.267, just below Thursday's two-month high of 103.630.
The dollar index is on track to register gains of just under 1% for the week. Constructive talks to resolve the ongoing debt ceiling impasse in Washington have fostered optimism that a resolution can be reached, thereby averting a detrimental debt default.
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