Investing.com - " The dollar was broadly lower against the other major currencies on Friday, as optimism following the announcement of a U.S. budget deal to raise the debt ceiling and avert a default faded.
During European morning trade, the dollar was steady against the yen, with USD/JPY dipping 0.01% to 97.90.
The dollar remained under pressure amid fears over the impact of the government shutdown on the already fragile economic recovery, which could prompt the Federal Reserve to delay plans for scaling back its stimulus program until at least the start of next year.
The possibility of another debt crisis also loomed, as the temporary debt ceiling agreement reached early Thursday does not resolve the underlying budgetary issues dividing Republicans and Democrats.
The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.
Earlier Friday, Bank of Japan Governor Haruhiko Kuroda said that effects of the central bank's monetary stimulus are firmly emerging on economic activity and that the positive impact is spreading in the economy and prices.
The euro was also steady against the dollar, with EUR/USD inching up 0.05% to 1.3685.
The dollar was also lower against the pound, with GBP/USD up 0.12% to 1.6182, and steady against the Swiss franc, with USD/CHF easing 0.04% to hit 0.9020.
Elsewhere, the greenback was steady to lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD adding 0.13% to 0.9647, NZD/USD easing up 0.06% to trade at 0.8491 and USD/CAD down 0.05% to 1.0289.
Reserve Bank of Australia Governor Glenn Stevens said in a speech earlier that good progress has been made, but there remains a lot of work to do be made to make sure that post-global financial crisis reforms are implemented.
Separately, the export-related currencies found support after official data showed China gross domestic product grew by 7.8% in the third quarter, in line with expectations and up from 7.5% in the three months to June.
The data eased concerns over the strength of the recovery in the world's second-largest economy.
A separate report showed that industrial production in China rose by an annualized rate of 10.2% in September, exceeding expectations for a 10.1% increase, after a 10.4% rise the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.06% to 79.69.
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