The dollar took the last government shutdown in stride, but this time may be different.[...]
* Worries over possible U.S. government shutdown weigh ondollar* US lawmakers try to cobble together deal to avert shutdown* 10-year UST yields hit highest since Sep 2014* But stocks on firm ground, US futures higher* Graphic: World FX rates in 2018 tmsnrt.rs/2egbfVhBy Dhara RanasingheLONDON, Jan 19 (Reuters) - The dollar wallowed nearthree-year lows on Friday as heightened fears of a U.S.governme[...]
The US dollar traded lower today ahead of a midnight deadline to fend off a government shutdown.[...]
The dollar held steady above a three-year low versus a basket of currencies on Friday, marking a fifth week of falls and its longest losing streak since May 2015 as worries over a possible U.S. government shutdown weighed.[...]
Forex - Dollar Dips In Asia As Markets Await US On Stopgap Spending Bill[...]
* Dollar pressured by U.S. government shutdown risk* Euro near three-year high, yen near four-month high vsdollar* Graphic: World FX rates in 2017 - tmsnrt.rs/2egbfVhBy Jemima KellyLONDON, Jan 19 (Reuters) - The dollar laboured near athree-year low against a basket of currencies on Friday, headingfor a fifth week of falls that would be its longest losingstreak since May 2015, as worries about a possible U.S.government shutdown weighed.The U.S. currency slipped to its lowest since December 2014this week, with investors selling it on the view that othercentral banks will join the Federal Reserve in raising interestrates, after years of ultra-loose policy adopted to combat the2008 global financial crisis and subsequent recessions.It was slightly off Thursday's lows on Friday but wasnevertheless down 0.1 percent on the day against its basket ofsix major rivals.The U.S. House of Representatives passed a bill on Thursdayto fund government operations through to Feb. 16 and avoidagency shutdowns this weekend when existing allocations expire.The bill has yet to be approved by the Senate, where it faces anuncertain future."(This) is not having a major impact... because we have hadlots of threats of shutdown in our lives and (this) would needto turn into something much more significant to have a bigimpact," said Kit Juckes, Societe Generale's chief macrostrategist in London.The prospect of Senate approval has been complicated byPresident Donald Trump saying that an extension of funding forthe children's health insurance programme, a Democraticpriority, should not be included.The euro edged up 0.2 percent to $1.2257, near athree-year high of $1.2323 touched on Wednesday. Having advancedmore than half a percent this week, the common currency looksset to post a fifth consecutive week of gains, with traders nowfocused on next Thursday's European Central Bank meeting.The dollar slipped by 0.4 percent to 110.60 yen, withits rebound from Wednesday's four-month low of 110.19 alreadyfading despite a rise in U.S. debt yields.A tiny reduction in the Bank of Japan's bond buying thismonth was enough to spark speculation about possiblemodification of policy, even though many market players thinkany move will be many months away."Markets are increasingly sensitive to the prospect of aless-dovish BOJ, which is putting pressure on dollar/yen,"analysts at UBS Wealth Management said in a note. They addedthat they will be looking to the BOJ's policy meeting next weekto gain more clarity on the central bank's stance."For now, we do not think the BOJ has any urgency to shiftits yield curve control regime," they added.Another underlying factor behind the dollar's weakness hasbeen global investors, including sovereign wealth funds andcentral banks, diversifying their holdings by switching morefunds into other currencies.(Reporting by Jemima Kelly with additional reporting byHideyuki Sano in Tokyo; Editing by Mark Heinrich)[...]
* Dollar pressured by U.S. government shutdown risk* Euro near three-year high, yen near four-month high vsdollar* Graphic: World FX rates in 2017 - tmsnrt.rs/2egbfVhBy Jemima KellyLONDON, Jan 19 (Reuters) - The dollar laboured near athree-year low against a basket of currencies on Friday, headingfor a fifth week of falls that would be its longest losingstreak since May 2015.The U.S. currency slipped to its lowest since December 2014this week, with investors selling on the view that other centralbanks will join the Federal Reserve in looking to raiseultra-low interest rates adopted to combat the 2008 globalfinancial crisis and subsequent recessions.The dollar index stayed close to those levels on Friday,with fears of a potential U.S. government shutdown alsoweighing. It was 0.3 percent on the day at 90.243, justoff Thursday's low of 90.113. It has lost about 2 percent so farin 2018.The U.S. House of Representatives passed a bill on Thursdayto fund government operations through to Feb. 16 and avoidagency shutdowns this weekend when existing allocations expire.The bill has yet to be approved by the Senate, where it faces anuncertain future."Odds of a U.S. government shutdown have risen sharply inthe past 24 hours," said ING currency strategist Viraj Patel."While we would expect such noise to keep the dollar on theback foot, any fundamental fallout at this stage would seempremature – not least as history tends to show that some sort ofconciliatory approach to keep the government functioning in thelong-run will ultimately prevail within Congress."The prospect of Senate approval has been complicated byPresident Donald Trump saying that an extension of funding forthe children's health insurance programme, a Democraticpriority, should not be included.The euro edged up 0.3 percent to $1.2276, near athree-year high of $1.2323 struck on Wednesday. Having advancedmore than half a percent this week, the common currency couldpost a fifth consecutive week of gains.The dollar slipped by half a percent to 110.60 yen,with its rebound from Wednesday's four-month low of 110.19already fading despite a rise in U.S. debt yields.A tiny reduction in the Bank of Japan's bond buying thismonth was enough to spark speculation about possiblemodification of policy, even though many market players thinkany move will be many months away."Markets are increasingly sensitive to the prospect of aless-dovish BOJ, which is putting pressure on dollar/yen,"analysts at UBS Wealth Management said in a note, adding thatthey will be looking to the BOJ's policy meeting next week togain more clarity on the central bank' stance."For now, we do not think the BOJ has any urgency to shiftits yield curve control regime," they added.Another underlying factor behind the dollar's weakness hasbeen global investors, including sovereign wealth funds andcentral banks, diversifying their holdings by switching morefunds into other currencies.(Reporting by Jemima Kelly; Additional reporting by HideyukiSano in Tokyo; Editing by David Goodman)[...]
*Republicans scramble for funding deal before midnight deadline. *Some see modest market effect from a U.S. government shutdown. *Euro near 3- year.[...]

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