The currency market witnessed three currencies suffering heavy losses, with the US dollar bearing the largest share of losses in today's currency market, followed by the Australian dollar in second place, and finally the Canadian dollar closing the currency market losses with the opening of the US session.

First: The US Dollar

The US dollar declined by 2.36% against other major currencies, driven by some factors that boosted the decline in demand for the greenback, foremost among them the issue of the US debt ceiling; warnings about this issue continued, most notably remarks by Janet Yellen who clarified that financial developments reveal that the United States may default on its debts at the beginning of next month, which sparked panic in currency markets about harm to the world's largest economic power, negatively reflecting on the US dollar's performance against other currencies in today's trading.

Demand for the US dollar also suffered in the currency market today as markets awaited the Federal Reserve's decisions today amid fears that the Fed might stop raising interest rates due to the US banking sector crisis and the collapse of First Republic Bank despite the acquisition of the giant US bank JPMorgan, however, these developments caused severe damage to the dollar.

Second: The Australian Dollar

The Australian dollar came in second place in the list of losses in today's currency market with a percentage of 2.14%, affected by the sharp decline in risk appetite, after the Australian dollar had strong gains in yesterday's Tuesday trading; following the Reserve Bank of Australia's decision to raise interest rates by 25 basis points, contrary to market expectations which pointed to maintaining the Australian interest rate.

Third: The Canadian Dollar

At the close of currency market losses, the Canadian dollar suffered the smallest share of losses with a rate of 0.18%, in response to the strong decline in benchmark oil contracts for the third consecutive day. Often, movements of the Canadian dollar are affected by crude oil prices, considering the role of the oil sector in the Canadian economic activity; Canada is one of the major crude exporters worldwide, thus the decline in crude oil contributed to reinforcing the downward path of the Canadian dollar in trading.

It is worth noting that the currency market awaits the interest rate decision of the US Federal Reserve Bank later today, which is widely expected to raise the interest rate by 25 basis points. However, markets are waiting for the release of the US interest rate statement and the press conference of Federal Reserve Chairman Jerome Powell, to receive any signals or hints regarding the bank's future moves, which will strongly affect the upcoming currency market movements.