The dollar retreated from six-month highs against the yen on Monday following a U.S. debt ceiling deal, which boosted risk appetite and reduced the appeal of the safe-haven currency. U.S. President Joe Biden agreed with House Speaker Kevin McCarthy to suspend the $31.4 trillion debt ceiling until Jan. 1, 2025, which was well received by world markets.
The dollar index, which measures the greenback against a range of currencies, was slightly lower at 104.22. However, talk of an ongoing U.S. rate-hiking cycle has supported the dollar this month. The Turkish lira also hit a record low at 20.08 per dollar after President Tayyip Erdogan's election victory.
