- POSTED: 02 Oct 2013 05:53
This graph is an experimental feature that tracks number of views over time.
The dollar declined on Tuesday against most major currencies, as investors believe the partial government shutdown will not significantly harm the US economy.
NEW YORK: The dollar declined on Tuesday against most major currencies, as investors believe the partial government shutdown will not significantly harm the US economy.
At 2100 GMT, the euro traded at $1.3527, up slightly from Monday's $1.3524.
The dollar fell to 97.94 yen from 98.21 yen in the prior session.
The euro bought 132.51 yen, down from 132.81.
Analysts see the shutdown which began Tuesday due to a political stalemate over funding the government, as bearish for the dollar because it could slow economic growth and likely pushes back the time-frame for the US Federal Reserve to taper its bond-buying program.
But the dollar's losses were mitigated by a stronger-than-expected reading on US manufacturing.
The Institute for Supply Management's purchasing managers index for manufacturing activity rose to 56.2 percent in September from 55.7 percent in August.
Analysts also predicted Washington would avoid letting the political maneuverings over the government shutdown get too far out of control. An October 17 deadline to raise the debt ceiling is seen as a huge priority that lawmakers are expected to respect.
"While political developments in Washington DC already seem rather irrational, we view it as almost inconceivable that the US Congress will be willing to risk a US default," said Nomura in a note.
Similarly, analyst Kathy Lien of BK Asset Management noted that while the US has seen some 17 shutdowns in the past, the country has never defaulted on its debt or missed an interest payment.
"We believe the chance of default is less than 5 percent and a government shutdown won't last for more than two weeks," Lien said.
The British pound advanced to $1.6193 from $1.6185 Monday.
The dollar traded at 0.9054 Swiss franc, up from 0.9046.