The dollar edged lower on May 29 after a deal between U.S. President Joe Biden and House Speaker McCarthy to raise the debt ceiling boosted risk appetite and dampened safe-haven demand for the greenback.
UniCredit analysts said in a note that the debt-ceiling deal “could restore some degree of risk appetite across the market.
However, the market reaction may be limited as the US, UK and many European countries coincide with public holidays, while the deal still needs to be approved by the US Congress by June 5.