Dollar's Dip Amid U.S. Government Shutdown Spooks Markets
The dollar hit one-week lows against major currencies as the U.S. government shutdown worried markets and risked delaying key jobs data. Senate discussions continued, and the Fed's policy decision looms. Currency market behavior suggested safe-haven assets remained attractive, while concerns over U.S. jobs persisted.
The U.S. dollar reached one-week lows against major currencies on Wednesday following the U.S. government shutdown, which rattled markets and threatened to delay critical jobs data. The shutdown began after the Senate rejected a short-term spending measure to keep government functions running until November 21.
Senate Republican Leader John Thune confirmed that the chamber would reconsider the House-passed measure, with a vote scheduled for Wednesday. The dollar index, which monitors the U.S. currency against six major counterparts, dipped 0.1%. Broader market activity suggested interest in safe-haven currencies like the Japanese yen, while U.S. Treasuries and gold remained steady.
Concerns were raised in currency markets about the Fed's impending decision and its implication on rates. A mixed U.S. job report placed additional pressure on the dollar, raising stakes for private economic indicators as the shutdown's length becomes pivotal for market forecasts and Fed actions at the month's end.
(With inputs from agencies.)
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