Dollar Under Pressure Amid U.S. Shutdown Risks and Economic Releases

The dollar found itself under pressure on Monday, as investors braced for a series of U.S. economic reports that could shape perceptions of the Federal Reserve's monetary strategy. The market's attention was particularly drawn to the potential fallout from a looming U.S. government shutdown.

In early Asian trading, currency movements were relatively muted, although the dollar relinquished some recent gains. It had strengthened the previous week amid receding expectations of immediate Fed rate cuts. The dollar fell slightly against the yen, reflecting lingering uncertainty.

Adding to the currency market's apprehension was the legislative impasse that could lead to the first U.S. government shutdown of the fiscal year. Investors are keenly aware that this development could delay crucial data releases, including Friday's anticipated nonfarm payrolls report.

(With inputs from agencies.)