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 o...