USD Momentum Surges Amidst Government Shutdown Concerns
The U.S. dollar surged to a six-week high as concerns over a prolonged government shutdown fueled demand for safe haven assets. Investors are uncertain about economic impacts, leading to rising Treasury yields and increased gold prices. As global economies adjust, currency markets remain volatile.
In early Wednesday trading, the U.S. dollar surged to a six-week peak, underpinned by escalating fears about a prolonged U.S. government shutdown. Investors sought refuge in safe haven assets amidst an intensifying standoff, energizing demand and driving market movements.
The dollar index, tracking the greenback against six major counterparts, climbed 0.50%, reaching its highest since late August. This rise coincides with President Trump's threats of mass federal employee dismissals during the budget deadlock. As prospects for resolution appeared dim, market sentiment soured, according to a Westpac analysis.
Amidst mounting economic uncertainty, safe havens like gold saw record highs, breaching $4,000 per ounce. Meanwhile, currency instances like the yen and kiwi remained volatile, highlighting global economic shifts and investor anxieties.
(With inputs from agencies.)
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