Dollar is near the highest level in 7 weeks, amid optimism about the debt ceiling talks

The dollar settled near a seven-week high on Thursday after positive indications from US President Joe Biden and Republican House Speaker Kevin McCarthy on debt ceiling talks.

On Wednesday, Biden and McCarthy confirmed their intention to reach an agreement soon to raise the government debt ceiling of $ 31.4 trillion, after they agreed the day before to conduct direct negotiations after a months-long stumbling block.

A sudden rise in Treasury yields helped the dollar rise, and the dollar index, which measures the US currency against a basket of currencies, remained near the seven-week peak it recorded in the previous session, and reached 102.86 in the latest trading.

The euro is under pressure, making it near its lowest level in six weeks at $1.0841. The single European currency reached $1.08105 on Wednesday, its lowest level since April 3.

As for the Japanese yen, it reached 137.50 per dollar in its latest trading, after declining by about one percent on Wednesday.