MUFG: Dollar rises as debt ceiling worries ease, rate-cut bets dwindle

MUFG analyst Derek Halpenny said on May 18 that as comments from U.S. politicians increased market optimism that an agreement to raise the debt ceiling would be reached, risk appetite was boosted, which in turn lowered bets on future U.S. rate cuts. Earlier, U.S. President Biden said that negotiations with Republicans were fruitful and a default might be avoided.