Forex – Dollar Remains Broadly Lower on U.S. Politics

Dollar still on the downside amid government shutdown – The U.S. dollar remained broadly lower against other major currencies on Monday, as the U.S. government shutdown on Friday continued to weigh on demand for the greenback.

The U.S. government shutdown went into effect at midnight on Friday after Senate negotiators on a last minute deal to keep the government funded amid a dispute over immigration and border security.

The Senate was due to hold a vote at 12:00 PM ET (17:00 GMT) on Monday on a temporary measure to fund the government through Feb. 8, but uncertainty remained over whether it had enough votes to pass.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.25% at 90.26 by 05:15 a.m. ET (09:15 GMT), not far from Friday’s three-year low of 89.96.

The euro and the pound were higher, with up 0.25% at 1.2253 and with gaining 0.31% to 1.3902.

The single currency found support following news that Germany’s Social Democratic Party to begin formal coalition talks with Chancellor Angela Merkel’s conservatives, easing a political deadlock in the euro area’s largest economy.

The yen was steady, with at 110.69, while slid 0.30% to 0.9597.

Elsewhere, the Australian and New Zealand dollars were stronger, with up 0.15% at 0.8010 and with advancing 0.48% to 0.7306.

Meanwhile, edged down 0.18% to trade at 1.2471.

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