Dollar Lower After Two-Day Drop Versus Pound as Shutdown Looms

Jalatama - The dollar remained lower after a two-day decline versus the pound as the U.S. government sped toward a partial shutdown with no sign of a last-minute deal on funding.

The U.S. currency dropped against most major peers last month as the wrangling between Senate Democrats and House Republicans threatened to stunt growth at a time when the central bank is weighing a tapering of stimulus. Australia’s dollar was near its lowest level since October 2008 versus its New Zealand counterpart before the larger nation’s central bank meets to decide on policy today. The yen fell after the Bank of Japan’s quarterly Tankan survey beat economists’ estimates.

The dollar was little changed at $1.6189 versus the pound as of 10:18 a.m. in Tokyo after falling 0.9 percent over two days. It touched $1.6203 per pound yesterday, the weakest since Jan. 3. It advanced 0.1 percent to 98.41 yen after yesterday touching 97.50, the least since Aug. 29. The euro was at $1.3523 from $1.3527 and gained 0.1 percent to 133.08 yen.

(Source: Bloomberg)