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Forex- Dollar Lower as Government Shutdown Weighs

Published 22/01/2018, 17:02
© Reuters.  The U.S. dollar continues to fall.
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Investing.com - The U.S. dollar remained lower against other major currencies on Monday, weakened by the the U.S. government shutdown.

The U.S. government shutdown was in its third day after Democrats and Republicans failed to reconcile their differences over immigration legislation and pass a spending bill on Friday.

The Senate is expected to vote on a funding bill on Monday that would restore funding on a temporary basis but it is uncertain if they have enough votes to pass the measure. It’s the first time the government has shutdown since 2013, when the public sector was closed for 16 days.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.13% at 90.37 by 12:01 PM ET (17:01 GMT), not far from Friday's three-year low of 89.96.

Elsewhere, the euro and the pound rose, with EUR/USD up 0.09% at 1.2234 and with GBP/USD gaining 0.62% to 1.3944.

The single currency found support following news that Germany's Social Democratic Party voted on Sunday to begin formal coalition talks with Chancellor Angela Merkel's conservatives, easing a political deadlock in the euro area’s largest economy.

The yen was lower, with USD/JPY rising 0.41% to at 111.15, while USD/CHF gained 0.11% to 0.9638.

Elsewhere, the Australian and New Zealand dollars were stronger, with AUD/USD up 0.07% at 0.8004 and with NZD/USD advancing 0.52% to 0.7310.

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