Investing.com - The dollar slumped against most major currencies
on Friday as investors largely avoided the currency as a
congressional deadline to pass a spending package and avoid a
government shutdown grew closer.
In U.S. trading on Friday, EUR/USD was up 0.22% at 1.3519.
Congress must approve a spending package by Oct. 1 or risk a
partial government shutdown afterwards.
While markets are expecting a last-minute deal, uncertainty steered
investors away from the U.S. currency on Friday.
The Democratically-controlled Senate earlier Friday approved a
stop-gap spending bill to fund the government through Nov. 15.
The bill was stripped of language defunding President Barack
Obama's healthcare reform law, though the legislation will go back
to the Republican-controlled House of Representatives, which called
for defunding the president's healthcare law in the first place.
Mixed data softened the greenback as well.
Elsewhere, the Thomson Reuters/University of Michigan consumer
sentiment index fell to 77.5 in September from a reading of 76.8
the previous month.
Analysts were expecting the index to rise to 78.0 this month.
Separately, official data showed that U.S. personal spending rose
0.3% in August, in line with expectations, after an upwardly
revised 0.2% increase the previous month.
Data also showed that personal income in the U.S. rose 0.4% last
month as expected after an upwardly revised 0.2% gain in July, also
in line with expectations.
Core personal consumption expenditures, which exclude food and
energy, rose 0.2% in August, more than the expected 0.1% gain after
a 0.1% increase in July.
The data continued to cloud market expectations as to when the
Federal Reserve will begin taper its USD85 billion monthly
bond-buying program, which weakens the dollar by driving down
interest rates to spur recovery.
Meanwhile in Europe, preliminary data showed that Germany's
consumer price index was flat in September, in line with market
The greenback was down against the pound, with GBP/USD up 0.59% at
Across the Atlantic, sterling strengthened after Bank of England
Governor Mark Carney told the Yorkshire Post that he sees no need
for more bond-buying given the signs of recovery in the U.K.
The dollar was down against the yen, with USD/JPY down 0.78% at
98.25, and down against the Swiss franc, with USD/CHF trading down
0.50% at 0.9058.
The dollar was mixed against its cousins in Canada, Australia and
New Zealand, with USD/CAD down 0.05%at 1.0305, AUD/USD down 0.46%
at 0.9316 and NZD/USD trading down 0.18% at 0.8277.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, was down 0.32% at
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