Dollar down as US budget crisis looms

Published: 26 Sep at 9 AM Tags: Euro, Dollar,

The US dollar remains on the back-foot and is currently trading close to its lowest level in nearly 7 months. The currency is being hampered by a lack of progress in Washington to avert a government shutdown. The greenback is also under pressure because last month’s new home sales were close to their lowest level this year and there was little growth in orders for manufactured goods during August.

The Federal Reserve has said that any scaling back of its stimulus programme will depend on the US economy showing positive signs of growth and the possibility of a budget crisis is doing nothing to help the situation. However, most investors are expecting Congress to come up with an eleventh-hour breakthrough.

The dollar has dropped from a high of 98.82 yen to 98.49 yen. Conversely the euro is up from 132.66 yen to 133.16 yen. The single currency has also risen from Wednesday’s low of $1.3462 to $1.3519.

The Norwegian crown has also taken a bit of a hammering after figures for the three months ending in August show unemployment rising to 3.6 per cent rather than the 3.4 per cent anticipated. The euro is currently worth 8.1123 crowns.

Elsewhere, the New Zealand dollar has come off a 4-month high of $0.8445 to settle at $0.8245.