The US dollar fell to a one-week low against major currencies on Wednesday, October 1.
According to Reuters, this is due to the US government shutdown, which has rattled markets and threatens to delay key employment data considered crucial for Federal Reserve policy.
The previous day, the dollar was weighed down by mixed data from the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS). The report showed that job openings in the US increased slightly in August, while companies were less willing to hire, indicating a weakening labor market.
The dollar index, which tracks the dollar against six major currencies, fell 0.2%. Specifically, the dollar fell 0.5% against the yen, reaching its lowest level in two weeks. Meanwhile, the US currency lost 0.2% against the Swiss franc.
Reuters quotes Jane Foley, chief currency strategist at Rabobank, as saying it was difficult to determine whether the yen’s strengthening was driven by demand for safe-haven assets or speculation about a Bank of Japan rate hike.
On September 29, the dollar fell on concerns about a possible US government shutdown. The dollar index then fell 0.22% to 97.90.
Investors were concerned about the threat of a US government shutdown. The dollar typically weakens before such events, and then strengthens again after the funding dispute is resolved.
On October 1, the US government went into a government shutdown. Congress failed to pass a government funding bill before the start of the new fiscal year. This marked the third federal shutdown under President Donald Trump.
Բաժանորդագրվեք մեր ալիքին Telegram-ում
