Dollar regains footing after U.S. government shutdown
TOKYO : The dollar regained some footing on Monday after slipping earlier on a U.S. government shutdown, supported by higher Treasury yields.
The U.S. government shutdown took effect at midnight on Friday after Democrats and Republicans, locked in a bitter dispute over immigration and border security, failed to agree on a last-minute deal to fund government operations.
In order to break the impasse, Republican and Democratic leaders of the U.S. Senate held talks on Sunday. The Senate was expected to vote at 0600 GMT on whether to advance a measure to fund the government through Feb. 8.
The dollar’s index against a basket of six other major currencies initially dipped to hit 90.155 but was last up 0.07 percent at 90.634 , managing to hold above the three-year trough of 90.113 set on Thursday.
The euro was mostly flat at $1.2227 after dipping to$1.2275, and failing to regain a three-year peak of $1.2323 that it scaled on Wednesday.
The dollar pared its earlier losses and was little changed at 110.810 yen , still some distance from a four-month low of 110.190 plumbed on Wednesday. The greenback received some support from higher U.S. yields.
The Australian dollar climbed 0.1 percent to $0.7994 and the New Zealand dollar also advanced 0.1 percent, to $0.7284 .
The pound dipped 0.25 percent to $1.3868 , pulling away from a 1-1/2-year top of $1.3942 reached on Wednesday following Friday’s disappointing UK retail sales data.
Before Friday’s fall sterling had gained for seven straight sessions against the dollar, with traders welcoming positive noises from the European Union about negotiations for Britain’s exit.
Source : Reuters