SINGAPORE – The U.S. dollar held steady in early Asian trading on Monday, supported by signs that Congress may be moving closer to a deal to reopen the federal government, even as weak economic data revived global growth concerns.
The dollar index, which measures the greenback against six major currencies, rose 0.2% to 99.740, ending a three-day losing streak. The yen and euro lost ground, with the dollar fetching 153.82 yen and the euro weakening to $1.155. Analysts said optimism over a resolution to the historic U.S. government shutdown helped blunt the dollar’s usual appeal as a safe-haven currency.
Consumer sentiment data from the University of Michigan revealed a sharp drop to its lowest level in more than three years, highlighting the economic strain from the 40-day shutdown. “The consumer confidence data was a shocker and pretty clear evidence that the shutdown was affecting households,” said Tony Sycamore, market analyst at IG, noting that progress in Congress has eased some concerns.
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Meanwhile, economic developments in Asia also influenced currency markets. Japan’s new fiscal approach and China’s higher-than-expected consumer price inflation, combined with falling exports, have led analysts to expect slower economic growth in the region. Standard Chartered strategist Eric Robertsen warned that reduced liquidity support in 2026 could further strengthen the U.S. dollar over the next year.
Trading in major currencies showed modest movements, with sterling down 0.2% at $1.314, the Australian dollar up 0.1% at $0.6502, and the New Zealand dollar slightly weaker at $0.56265. Market participants continue to monitor Fed funds futures, which imply a 67% probability of a 25-basis-point rate cut at the December 10 Federal Reserve meeting.
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