Dollar Weakens Against All G10 Currencies, Markets Worried About US Shutdown
The US dollar weakened against all major global currencies on Monday (September 29, 2025), as market concerns grew over a potential government shutdown in the United States. The Bloomberg Dollar Spot Index fell 0.2% ahead of a crucial meeting between President Donald Trump and Congressional leaders to discuss a short-term budget to prevent a government shutdown.
Investors began reducing their exposure to the dollar and shifting to other currencies considered more stable amid the uncertainty. The Japanese yen and Australian dollar recorded the largest gains today. AUD/USD rose 0.4% to 0.6571, while USD/JPY fell 0.4% to 148.94. Market participants were also awaiting a speech by Bank of Japan official Asahi Noguchi, which could provide clues about the direction of the Japanese central bank's policy.
Pressure on the dollar also came from falling US bond yields. The 10-year Treasury yield fell two basis points to 4.16%, after rising five basis points last week. The market views the failure to avoid a shutdown as a potential deterioration in the US economy, reinforcing expectations that the Fed could take a more cautious stance going forward.
Meanwhile, the euro and pound sterling also strengthened. EUR/USD edged up 0.2% to 1.1728, and GBP/USD strengthened to 1.3434. This indicates that global markets are reconsidering their stance on the dollar, especially if political turmoil in Washington intensifies and directly impacts the Fed's monetary policy direction. (ads)
Source: Newsmaker.id
