The dollar remained near a one-week low against major currencies on Wednesday as the U.S. government shutdown threatened to delay critical employment data. Funding lapsed at midnight in Washington after Republicans and Democrats failed to reach an interim agreement, but Senate Republican Leader John Thune said lawmakers would vote again on the House measure when the chamber convenes at 1400 GMT. The Labor and Commerce departments announced their statistics agencies would suspend data releases during a partial shutdown, affecting Friday's nonfarm payrolls report that markets view as essential for determining whether the Federal Reserve will cut interest rates at the end of this month.
The dollar index stood at 97.814 as the deadline passed, after falling to 97.633 overnight for the first time since last Wednesday. President Donald Trump warned congressional Democrats on Tuesday that a shutdown would allow his administration to take irreversible actions, but traders currently see a quarter-point rate cut on Oct. 29 as nearly certain with market-implied odds around 95 percent. The euro edged up slightly to $1.1738 after rising to the highest since Sept. 24 at $1.1762 on Tuesday, while the dollar remained flat at 147.92 yen following a three-day 1.2 percent slide.
The dollar index stood at 97.814 as the deadline passed, after falling to 97.633 overnight for the first time since last Wednesday. President Donald Trump warned congressional Democrats on Tuesday that a shutdown would allow his administration to take irreversible actions, but traders currently see a quarter-point rate cut on Oct. 29 as nearly certain with market-implied odds around 95 percent. The euro edged up slightly to $1.1738 after rising to the highest since Sept. 24 at $1.1762 on Tuesday, while the dollar remained flat at 147.92 yen following a three-day 1.2 percent slide.
