Fear of default if US debt limit is not increased

(Gujarat News Office) MUMBAI: The rupee depreciated sharply against the dollar in early trade today. According to US Treasury Secretary Janet Yellen, the US debt ceiling must be raised to avoid possible debt defaults in the US. The effect of this news was seen in the currency market today. He said the United States had never defaulted on the issue before and that such a debt ceiling would have to be raised to prevent such a situation from happening again. If the US defaults, the stock market is likely to collapse and interest rates are likely to rise.

In the US, cash reserves with the Treasury are likely to decline in October. And there are fears of a મર્યા 2.50 trillion debt limit. Following these signals from the Treasury Secretary, there were indications that the dollar index was rising against various currencies in the world market.

The two-day meeting of the US Federal Reserve is scheduled for Tuesday and Wednesday. In this meeting, the market players have been keeping an eye on the strategy being adopted to reduce bond buying. Prior to the meeting, the Treasury Secretary's statement came as there were indications that there was a lot of speculation in the currency market.

The financial situation in China is also in crisis. The dollar's rise against the Chinese currency in world markets has also had an impact on the domestic currency market. In the Mumbai currency market, the dollar rose to Rs 4.5 and Rs 4.5, while the dollar rose 3 paise today. Initially, the price had gone up by 3 paise to Rs 4.5.

The global dollar index rose to 7.5 from 7.5 today. The dollar index hit a new four-week high. Meanwhile, the British pound fell by 3 paise to Rs 100.51 against the dollar in the Mumbai currency market today. The pound lost Rs 101 today.

The European currency, the euro, also fell by 3 paise to Rs 4.5 against the rupee today. China's currency has fallen against the dollar in world markets. In the Mumbai market, however, the Chinese currency was trading 0.4 per cent higher against the rupee at the end of the day. This was stated by market sources. Japan's currency also rose 0.5 percent.