U.S. Government Shutdown: Impact on Dollar and Global Markets
The U.S. government has entered a shutdown, affecting the dollar and delaying key economic data releases. Disagreement between Republicans and Democrats led to the funding lapse. Traders brace for the Federal Reserve's upcoming decision, with market implications hinging on the shutdown's duration. International markets are closely monitoring the situation.
The U.S. government shutdown has caused the dollar to hover near a one-week low against major currencies, impacting global markets. The shutdown, initiated by a funding disagreement between Republicans and Democrats, has resulted in delays to vital economic data releases.
Senate Republican Leader John Thune indicated another vote on the House-passed measure would occur soon, as the Senate convenes for discussions. Meanwhile, markets anticipate the Federal Reserve's policy decision, with a quarter-point rate cut seen as probable.
The dollar's performance remains under pressure amid mixed U.S. labor data. Internationally, attention is on Japan where the Bank of Japan's hawkish stance could influence rate changes, despite broader economic concerns such as Trump tariffs.
(With inputs from agencies.)
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