Forex – Dollar Slips Lower after U.S. Government Shutdown

© Reuters. Dollar slips lower after U.S. government shutdown – The dollar slipped lower against a currency basket on Monday after the U.S. government was forced to shut down as a dispute between Republicans and Democrats over immigration continued to .

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.19% to 90.32 by 03:37 AM ET (08:37 AM GMT), not far from Friday’s three-year trough of 89.96.

The U.S. government shutdown went into effect at midnight on Friday after Senate negotiators failed to reach an agreement 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 dollar remained slightly higher against the yen, with rising 0.16% to 110.88, remaining supported above the four-month low of 110.18 reached last Wednesday.

The euro pushed higher, with rising 0.16% to 1.2243, remaining shy of last Wednesday’s three-year peaks of 1.2322.

The single currency was boosted by news that Germany’s Social Democratic Party voted on Sunday to begin formal coalition talks with Chancellor Angela Merkel’s conservatives, easing in the euro area’s largest economy.

The dollar was lower against the traditional safe haven Swiss franc, with losing 0.17% to trade at 0.9609, after hitting a four-month low of 0.9534 on Friday.

The pound gained ground, with adding 0.25% to trade at 1.3892. Sterling had hit a high of 1.3944 on Friday, the highest level since Britain’s vote to exit the European Union in June 2016.

Meanwhile, the Australian dollar was little changed with at 0.7998 and the New Zealand dollar was higher, with advancing 0.28% to 0.7292.

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