Investing.com - The dollar was broadly weaker against the other major currencies on Tuesday after the U.S. government went into a partial shutdown after Congress failed to reach a deal on a budget for the new financial year.
During European late morning trade, the dollar was close to session lows against the yen, with USD/JPY down 0.43% to 97.79.
The dollar came under pressure amid expectations that the first partial U.S. government shutdown for 17 years would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.
Elsewhere, the euro was hovering close to seven-month highs against the dollar, with EUR/USD up 0.15% to 1.3544.
Data released on Tuesday showed that the final reading of the euro zone manufacturing purchasing managers’ index was unchanged at 51.1 in September, in line with forecasts.
Separately, data showed that the number of unemployed people in Germany rose for the second consecutive month in September, while the country’s jobless rate rose to 6.9% from 6.8% in August.
Eurostat said the total euro zone unemployment rate was 12.0% last month, while August’s rate was revised down to 12% from 12.1%.
The dollar fell to eight-month lows against the pound, with GBP/USD advancing 0.32% to 1.6237.
Sterling briefly dipped lower after data showed that manufacturing activity in the U.K. slowed slightly in September, but remained close to August’s two-and-a-half year highs.
Markit said that its U.K. manufacturing PMI fell to 56.7 in September from a downwardly revised 57.1 in August. Analysts had expected the index to tick up to 57.3.
The dollar was trading within striking distance of 19-month lows against the Swiss franc, with USD/CHF down 0.15% to 0.9042.
Elsewhere, the greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD rallying 1.09% to 0.9426, NZD/USD slipping 0.12% to 0.8291 and USD/CAD dipping 0.02% to 1.0306.
The Australian dollar jumped after the Reserve Bank of Australia left interest rates on hold at 2.5% on Tuesday and said the full effect of previous rate cuts were still coming through.
The RBA added that a weaker Australian dollar “would assist in rebalancing growth in the economy.”
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.23% to an eight-month trough of 80.15.
The Institute of Supply Management was to produce a report on U.S. manufacturing activity later in the trading day.
During European late morning trade, the dollar was close to session lows against the yen, with USD/JPY down 0.43% to 97.79.
The dollar came under pressure amid expectations that the first partial U.S. government shutdown for 17 years would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.
Elsewhere, the euro was hovering close to seven-month highs against the dollar, with EUR/USD up 0.15% to 1.3544.
Data released on Tuesday showed that the final reading of the euro zone manufacturing purchasing managers’ index was unchanged at 51.1 in September, in line with forecasts.
Separately, data showed that the number of unemployed people in Germany rose for the second consecutive month in September, while the country’s jobless rate rose to 6.9% from 6.8% in August.
Eurostat said the total euro zone unemployment rate was 12.0% last month, while August’s rate was revised down to 12% from 12.1%.
The dollar fell to eight-month lows against the pound, with GBP/USD advancing 0.32% to 1.6237.
Sterling briefly dipped lower after data showed that manufacturing activity in the U.K. slowed slightly in September, but remained close to August’s two-and-a-half year highs.
Markit said that its U.K. manufacturing PMI fell to 56.7 in September from a downwardly revised 57.1 in August. Analysts had expected the index to tick up to 57.3.
The dollar was trading within striking distance of 19-month lows against the Swiss franc, with USD/CHF down 0.15% to 0.9042.
Elsewhere, the greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD rallying 1.09% to 0.9426, NZD/USD slipping 0.12% to 0.8291 and USD/CAD dipping 0.02% to 1.0306.
The Australian dollar jumped after the Reserve Bank of Australia left interest rates on hold at 2.5% on Tuesday and said the full effect of previous rate cuts were still coming through.
The RBA added that a weaker Australian dollar “would assist in rebalancing growth in the economy.”
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.23% to an eight-month trough of 80.15.
The Institute of Supply Management was to produce a report on U.S. manufacturing activity later in the trading day.