Dollar Dips Amid Political Uncertainty and Economic Data Delays
The dollar is near a weekly low due to a potential U.S. government shutdown, which might delay key jobs data and affect Federal Reserve rate decisions. A marginal job openings increase contrasts hiring declines, putting emphasis on private economic indicators. Global currencies react variably amidst these developments.
The U.S. dollar lingered near a one-week low against major currencies on Wednesday as a potential government shutdown loomed, threatening to postpone important labor market data releases.
With government funding set to expire, Democrats and Republicans have yet to reach an agreement to prevent a shutdown, causing concern about the possible delay of crucial employment statistics. This situation has pressured the dollar, demonstrated by the currency index's dip to 97.633 overnight.
Additionally, mixed results from the latest Job Openings and Labor Turnover Survey, along with a shaky labor market, have compounded the dollar's struggles. In the absence of official data, traders will increasingly rely on private-sector indicators to gauge economic health.
(With inputs from agencies.)
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