Investing.com - The dollar was trading close to one-month lows against the yen on Monday as concerns over a looming U.S. government shutdown bolstered investor demand for the safe haven yen.
During U.S. morning trade, the dollar was weaker against the yen, with USD/JPY down 0.31% to 97.93, after falling as low as 97.51 earlier.
Political wrangling in Washington over funding for President Barack Obama’s healthcare law continued, fuelling fears over a possible government shutdown.
Congress must pass a short-term budget by midnight on Monday in order to keep the government open.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
Elsewhere, the euro was hovering close to seven-month highs against the dollar, with EUR/USD up 0.13% to 1.3539, after falling as low as 1.3478 earlier.
The euro found support following reports that Silvio Berlusconi was facing dissent within his own political party after he announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and calling for fresh elections.
Prime Minister Letta is going before parliament for a vote of confidence on Wednesday and will need to secure a majority to remain on in government.
Data released on Monday showed that consumer price inflation in the euro zone rose at the slowest pace since February 2010 in September, sliding to 1.1% from 1.3% in August.
Core CPI, which excludes food, energy, alcohol, and tobacco costs slowed to 1% from 1.1% in August.
The dollar was trading close to eight-month lows against the pound, with GBP/USD rising 0.22% to 1.6177.
Demand for sterling continued to be underpinned after Bank of England Governor Mark Carney said last week that he did not see a case for further quantitative easing.
The pound showed little reaction after data on Monday showed that U.K. net lending rose in line with expectations in August, while mortgage approvals rose more than expected.
The dollar was close to seven-month lows against the Swiss franc, with USD/CHF down 0.23% to 0.9041.
Elsewhere, the greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD up 0.39% to 0.9351, NZD/USD advancing 0.48% to 0.8321 and USD/CAD sliding 0.26% to 1.0279.
The Canadian dollar hit session highs after official data showed that the Canadian economy expanded 0.6% in July, following a 0.5% contraction in June.
The Canadian economy expanded 1.4% on a year-over-year basis, beating forecasts for an increase of 1.3%.
The Australian dollar had been lower earlier after data showed that China’s HSBC manufacturing index was revised down to 50.2 from an initial reading of 51.2 this month, indicating that the recovery in the world’s second largest economy remains fragile.
Economists had expected an unchanged reading.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.18% to 80.22.
During U.S. morning trade, the dollar was weaker against the yen, with USD/JPY down 0.31% to 97.93, after falling as low as 97.51 earlier.
Political wrangling in Washington over funding for President Barack Obama’s healthcare law continued, fuelling fears over a possible government shutdown.
Congress must pass a short-term budget by midnight on Monday in order to keep the government open.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
Elsewhere, the euro was hovering close to seven-month highs against the dollar, with EUR/USD up 0.13% to 1.3539, after falling as low as 1.3478 earlier.
The euro found support following reports that Silvio Berlusconi was facing dissent within his own political party after he announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and calling for fresh elections.
Prime Minister Letta is going before parliament for a vote of confidence on Wednesday and will need to secure a majority to remain on in government.
Data released on Monday showed that consumer price inflation in the euro zone rose at the slowest pace since February 2010 in September, sliding to 1.1% from 1.3% in August.
Core CPI, which excludes food, energy, alcohol, and tobacco costs slowed to 1% from 1.1% in August.
The dollar was trading close to eight-month lows against the pound, with GBP/USD rising 0.22% to 1.6177.
Demand for sterling continued to be underpinned after Bank of England Governor Mark Carney said last week that he did not see a case for further quantitative easing.
The pound showed little reaction after data on Monday showed that U.K. net lending rose in line with expectations in August, while mortgage approvals rose more than expected.
The dollar was close to seven-month lows against the Swiss franc, with USD/CHF down 0.23% to 0.9041.
Elsewhere, the greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD up 0.39% to 0.9351, NZD/USD advancing 0.48% to 0.8321 and USD/CAD sliding 0.26% to 1.0279.
The Canadian dollar hit session highs after official data showed that the Canadian economy expanded 0.6% in July, following a 0.5% contraction in June.
The Canadian economy expanded 1.4% on a year-over-year basis, beating forecasts for an increase of 1.3%.
The Australian dollar had been lower earlier after data showed that China’s HSBC manufacturing index was revised down to 50.2 from an initial reading of 51.2 this month, indicating that the recovery in the world’s second largest economy remains fragile.
Economists had expected an unchanged reading.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.18% to 80.22.