Investing.com - The dollar was mixed against the other major
currencies on Friday, although demand for the greenback remained
broadly under pressure as sustained concerns over the consequences
of the current U.S. government shutdown weighed.
During European afternoon trade, the dollar was lower against the
yen, with USD/JPY slipping 0.14% to 97.13.
The yen found support after the Bank of Japan refrained from adding
to its monetary stimulus program and as Japan Prime Minister Shinzo
Abe said the economy was strong enough to weather a sales-tax
Meanwhile, the dollar remained under pressure as investors
continued to weigh the implications of a protracted U.S. government
On Thursday, disappointing U.S. service sector data added to
concerns that the shutdown in Washington could have wider
consequences on the U.S. economy.
The Institute of Supply Management said its non-manufacturing
purchasing manager's index fell to a three-month low of 54.4 in
September from a reading of 58.6 in August. Analysts had expected
the index to decline to 57.4 last month.
The U.S. Labor Department on Thursday said the employment report
for September will not be released as scheduled on Friday due to
the government shutdown. It said a new release date had not been
Markets were also considering how the U.S. political deadlock will
impact negotiations to raise the U.S. debt ceiling, which the U.S.
Treasury Department has estimated will be reached by October 17.
Speaking overnight, International Monetary Fund head Christine
Lagarde said the failure to raise the U.S. debt ceiling could hurt
the global economy and warned U.S. growth could drop below 2% this
The euro edged lower against the dollar, as investors locked in
profits after the single currency rallied to eight-month highs on
Thursday, with EUR/USD shedding 0.22% to 1.3588.
Earlier Friday, official data showed that producer price inflation
in Germany fell 0.1% in August, confounding expectations for a 0.1%
rise, after a 0.1% slip the previous month.
The dollar was higher against the pound and the Swiss franc, with
GBP/USD down 0.63%, to 1.6053 and with USD/CHF rising 0.37% to hit
Elsewhere, the greenback remained steady to lower against its
Australian, New Zealand and Canadian counterparts, with AUD/USD
climbing 0.43% to 0.9434, NZD/USD edging up 0.05% to trade at
0.8297 and USD/CAD inching 0.01% higher to 1.0333.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, was up 0.22% to
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