Dollar dips on US government shutdown

Source:Xinhua Published: 2013-10-2 11:34:54

The US dollar slipped moderately against most major currencies Tuesday, affected by a partial US government shutdown.

The White House Office of Management and Budget late Monday night ordered federal agencies to begin their plans for the government shutdown, due to a lack of bipartisan funding bill. This is the first US government shutdown in 17 years.

Although analysts believe the impact on the economy tends to be short-lived, the looming debt ceiling posts a larger threat and weighs on the dollar.

The US dollar, however, was supported by upbeat manufacturing data released on Monday.

US economic activity in the manufacturing sector expanded in September for the fourth straight month, according to the Institute for Supply Management, a private research organization. The index registered 56.2, increasing from August's reading of 55. 7, beating market expectation.

US construction spending in August, which should have been released in the morning by the Census Bureau, was delayed as a result of the federal government shutdown.

The most closely-watched September non-farm payrolls report by the Labor Department, which is originally scheduled for Friday, would also be postponed.

In late New York trading, the euro rose to $1.3530 from $1.3525 of the previous session, and the British pound increased to $1.6197 from $1.6186. The Australian dollar climbed to $0.9388 from $0.9322.

The dollar bought 97.85 Japanese yen, lower than 98.21 yen of the previous session. The dollar moved up to 0.9058 Swiss franc from 0.9039, and it went up to C$1.3027 from 1.0303.

Posted in: Economy

blog comments powered by Disqus