Dollar falls as US moves to end government shutdown — Reuters
Photo: The dollar weakens amid the possible end of the shutdown (Getty Images)
The US dollar declined on global markets amid expectations that the government shutdown would soon come to an end. This boosted investor confidence in the US currency, according to Reuters.
The dollar index, which tracks the strength of the dollar against a basket of six major currencies, fell 0.1% to 99.643 after the Senate voted to advance a measure that could fund the US government until January.
Against the yen, the dollar rose 0.2% to 153.80 yen after Japanese Prime Minister Sanae Takaichi announced on Monday that she would work to establish a new fiscal target that spans several years.
Traders are also assessing the impact of US President Donald Trump's economic policies, which have caused a rush of production ahead of the deadline for US import tariffs.
Investors are also holding back on further rate cuts by the US central bank. The yield on benchmark 10-year Treasury bonds jumped 4.26 basis points to 4.1356% from Friday's US close of 4.093%.
The euro fell 0.1% to $1.1559, while the pound sterling traded at $1.3148, down 0.1% from a day earlier.
Background
The US Senate passed a government funding bill that is expected to end the longest shutdown in history.
However, a number of steps still need to be taken to end the shutdown. The bill must now be passed by the US House of Representatives, and only then will it be sent to President Donald Trump for signature.
The shutdown in the US began on October 1. As of today, it has been going on for 40 days and has broken all records in the history of the United States.
