US Dollar Risks Further Declines on Debt Ceiling, Fed Policy

It was a tough week for the world’s foremost currency (Ticker: USDOLLAR) as it finished sharply lower against key counterparts on sovereign credit rating fears and lackluster interest rate prospects. Traders began pricing in the previously unthinkable—a US Treasury default—on risks that US legislators may not agree to a budget deal as the government will soon run short of cash. Fed Chairman Ben Bernanke likewise sounded sunk the Greenback as he struck a dovish note on the future of monetary policy, and indeed risks remain weighed to the downside in the week ahead.