Dollar falls ahead of data releases, risk of US | Money News

By Rae Wee

SINGAPORE (Reuters) -The greenback eased on Monday ahead of a slew of U.S. financial releases that might present additional readability on the Federal Reserve’s fee path, whereas the growing risk of a U.S. authorities shutdown additionally got here into sharp focus.

Currency strikes have been largely subdued within the Asian session, although the greenback gave up some beneficial properties after ending final week stronger on the back of lowered Fed rate-cut bets.

Against the yen, the greenback was down 0.4% to 148.94, after having risen more than 1% in opposition to the Japanese currency final week.

The euro rose 0.28% to $1.1731, whereas sterling edged 0.27% greater to $1.3439.

The greenback index was down 0.22% to 97.93, having risen 0.5% final week.

Top of buyers’ minds was a looming U.S. authorities shutdown ought to Congress fail to go a funding invoice earlier than the fiscal 12 months ends on Tuesday.

Without passage of funding laws, elements of the federal government would close on Wednesday, the primary day of its 2026 fiscal 12 months.

That would have implications for the release of Friday’s closely-watched nonfarm payrolls report.

“I think the assumption will be that if we’re going to have a government shutdown, we won’t have the payrolls numbers. So… how do you trade the non-release of a number? You can’t,” mentioned Ray Attrill, head of FX analysis at National Australia Bank.

“The Fed meeting is not till the end of October. So I guess the working assumption will be that if we go into a shutdown, hopefully it won’t last sufficiently long. The numbers will still be available and published prior to the October meeting. I guess that’s really what’s important.”

Ahead of Friday’s jobs report, buyers may also get figures on job openings, personal payrolls, the ISM manufacturing PMI, amongst others, for additional clues on the health of the U.S. financial system.

A run of resilient U.S. financial data in current instances has pushed back in opposition to expectations of aggressive Fed fee cuts, with markets now pricing in about 40 foundation factors of easing by December.

In different currencies, the Aussie was final 0.36% greater at $0.6571, whereas the New Zealand greenback ticked up 0.26% to $0.5791.

The Reserve Bank of Australia declares its fee determination on Tuesday. Expectations are for the central bank to stand pat on charges.

(Reporting by Rae Wee; Editing by Shri Navaratnam and Jamie Freed)