SINGAPORE, May 17 (Reuters) – The dollar rose on Wednesday, benefiting from its safe-haven status amid the risk of a U.S. debt default, and as traders trimmed bets on a Federal Reserve rate cut any time soon following solid U.S. consumer spending data.
U.S. President Joe Biden and the senior congressman, Republican Kevin McCarthy, have edged closer to a deal to raise the U.S. debt ceiling, but nothing is clinched yet.
Biden said any default would land the economy in recession, but investors also fear the impact globally would be negative.
Against a basket of peers, including the euro, yen and sterling, the dollar index rose 0.25% to 102.86, after earlier touching its highest since early April.
It rose 0.5% against the yen to a two-week peak of 137.17 and 0.15% against sterling to $1.2469, after hitting its highest versus the British currency since April 26.
“A crushing blow to the world’s number one economy…