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Budget Impasse Continues to Weigh on Greenback

October 8, 2013 at 15:01 by Miranda Marquit

A sheet of new hundred-dollar billsThe current budge impasse continues to weigh on the greenback today, sending the currency lower against the euro and the pound. US dollar has managed to log gains against the Japanese yen, but the dollar index is lower today anyway.

Disagreements over how to end the government shutdown are the focus for the US dollar right now, and that is weighing on the greenback’s performance. After shutting down the government over the Patient Protection and Affordable Care Act (sometimes called “Obamacare“), Republicans are continuing to toe a hard line against Democrats in Congress.

The news is leading to a lower dollar, and the latest news that some in the Federal Reserve wanted to start the taper after the last meeting isn’t helping. The fact that the bond purchase program remains in place says a great deal about what Ben Bernanke and some of the other policymakers think about the chances for the US economy with this political impasse.

At 14:59 GMT the US dollar index is lower, dropping to 79.8650 from the open at 79.9120, and down from the previous close at 79.9410. EUR/USD is up to 1.3596 from the open at 1.3580. GBP/USD is up to 1.6105 from the open at 1.6097. USD/JPY has gained the upper hand, moving up to 96.9375 from the open at 96.7095.

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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