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Forex - Dollar Slips Lower on U.S. Government Shutdown

Published 02/09/2018, 01:53 AM
© Reuters.  Dollar pulls away from 2-1/2 week highs on government shutdown
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Investing.com - The U.S. dollar slipped lower against other major currencies on Friday, as the U.S. government was pushed into a second shutdown since the beginning of the year after a vote on a budget deal was delayed by Congress.

The midnight deadline to pass the budget deal was missed on Thursday night due to a prolonged speech by Senator Rand Paul, who objected to $300 billion in deficit spending in the bill saying that it would “loot the Treasury.”

U.S. congressional leaders had reached a two-year budget deal on Wednesday to raise government spending by almost $300 billion.

However, the greenback's losses were limited as U.S. bond yields turned higher again. The yield on benchmark 10-year Treasury notes was still hovering near a recent four-year peak on Friday.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.08% at 90.12 by 01:50 a.m. ET (05:50 GMT), off the previous session's two-and-a-half week high of 90.46.

The euro and the pound were higher, with EUR/USD up 0.12% at 1.2262 and with GBP/USD gaining 0.34% to 1.3959.

The yen was weaker, with USD/JPY up 0.19% at 108.95, while USD/CHF held steady at 0.9368.

Elsewhere, the Australian and New Zealand dollars were almost unchanged, with AUD/USD at 0.7779 and with NZD/USD at 0.7213.

Meanwhile, USD/CAD held steady at 1.2597.

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