Currency Crisis: How U.S. Shutdown Impacts the Dollar

The dollar's value plummeted to its lowest in a week against major currencies early Wednesday, coinciding with the U.S. government's lapse into a shutdown. The halt followed an unsuccessful attempt by Republicans and Democrats to finalize an interim funding agreement, threatening the release of pivotal jobs data.

While Senate Republican Leader John Thune announced another vote on the House-approved measure, the Senate was scheduled to reconvene at 1400 GMT. Early indicators showed the dollar index dropped 0.2% to 97.635, dipping further than its 97.584 level from a week ago.

In response, President Donald Trump cautioned Democrats that a shutdown could trigger his administration's enforcement of 'irreversible' actions, such as closing essential programs. Key departmental statistics, including those from Labor and Commerce, face suspension, delaying nonfarm payroll figures crucial to Federal Reserve interest rate decisions.