Dollar Dips Amid U.S. Shutdown Concerns and Economic Uncertainty
The dollar weakened on Monday due to potential U.S. economic shifts and the looming government shutdown risk. Currency fluctuations were modest in Asia, with the dollar losing gains post-Fed rate speculations. Attention shifts to Congress's funding decision to avert a shutdown affecting major reports and economic stability.
The U.S. dollar eased in early trading on Monday as investors braced for a series of economic releases expected to shed light on the Federal Reserve's future rate decisions. The possibility of a U.S. government shutdown added pressure to the currency's performance, following its strengthened position last week.
In the Asian markets, currency movements were muted. The dollar weakened by 0.4% against the yen, slightly depowering from its previous ascent. Meanwhile, the euro and sterling made gains, rising by 0.28% and 0.27%, respectively, influencing the dollar index to fall by 0.22%, settling at 97.93.
Investor concern heightened over potential shutdown impacts on economic data releases after Congress struggled to pass critical funding legislation. This delay could obstruct data such as the highly anticipated nonfarm payrolls report, creating trading uncertainties ahead of the Federal Reserve's late October meeting.
(With inputs from agencies.)
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