Stocks wobble, dollar at six-week high, on debt impasse

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Global shares dipped on Wednesday, while the dollar headed for its strongest weekly gain since February to trade at six-week highs, reflecting risk aversion among investors, as there is no breakthrough in sight yet over the U.S. debt ceiling.

Democratic President Joe Biden and top congressional Republican Kevin McCarthy on Tuesday held an hour of talks toAfter the meeting, McCarthy, the speaker of the House of Representatives, told reporters the two sides remained far apart on an agreement to lift the debt ceiling.

Without an agreement, in about two weeks, the government might not be able to pay its bills, and economists believe the chances of a recession are rising. The dollar has rallied 2% against a basket of major currencies in the last month, as investors grow increasingly wary of a sharp slowdown in the U.S. economy.

High-beta currencies - ones that tend to be more volatile - such as the pound are up sharply so far this year, along with emerging-market currencies, such as the Mexican peso or the Brazilian real , which have also gained.

 

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