As Debt Negotiations Continue, So Does the Fall of the US Dollar
Amidst debate of increasing the debt ceiling, the value of the US dollar has continued to decrease against it foreign counterparts. Just last week, the US dollar fell to $1.4465 against the euro, and down to $1.6391 against the UK pound.
If a deal to increase the borrowing limit is not made by August 2, the US risks defaulting on its debt.
Meanwhile, fear continues to escalate at the prospect of more debt, causing stock prices to fall.
In Europe, countries are being forced to borrow at higher interest rates. This is despite reaching a deal last week to help solve their debt crisis.
Spain paid an interest rate of 2.519% for a 2.9bn euro short term debt of six months. For the same amount of time, Italy incurred a 2.269% interest.
The US has accumulated a national debt amounting to $14.3tn yet President Barack Obama and House Speaker John Boehner continues to blame each other about not reaching a deal.
It was usually a routine in Congress to vote on increasing debt limits. But without any significant decrease on the budget deficit, Republicans refuse to reach a deal about the debt.Follow us on Twitter to get free up-to-date news via tweets from the World Correspondents, or you can subscribe to us by entering your e-mail below. You can confirm your free subscription by clicking the confirmation link that will be sent to your e-mail address. Once you've confirmed, then you're good to go.