Dollar Falls as Chance of Shutdown Rises

Dollar Falls as Chance of Shutdown Rises (Reuters)

As U.S. lawmakers continued to be unable to reach a deal to avert a government shutdown as soon as tomorrow, the U.S. dollar fell against a variety of rival currencies. “The potential of a government shutdown could result in a sustained fiscal drag on the economy that could push out any monetary policy normalization by the Federal Reserve,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington D.C. “Consequently, a government shutdown would likely weigh on the dollar, especially against traditional safe-haven assets like the Japanese yen and the Swiss franc.”