|Greenback in retreat mode
The US dollar fell against major currencies Monday as the US budget fight dragged on with no sign of progress.
The euro traded at US$1.3579 compared with US$1.3557 Friday.
The US dollar also sank against the yen, buying 96.68 of the Japanese currency compared with 97.46.
The euro fell against the yen, trading at 131.30 yen from 132.13.
“Dollar sentiment has been in retreat mode for a while amid concerns that political brinkmanship in Washington could hurt American growth during the final quarter of the year and keep the Fed from slowing stimulus,'' said Joe Manimbo, senior market analyst at Western Union Business Solutions.
However, Manimbo said the US dollar could actually strengthen with an escalation of US market anxiety because of the greenback's standing as an “elite'' safe haven.
Similarly, Christopher Vecchio, a currency analyst at DailyFX, said the US dollar, as a safe haven, should advance “if the October 17 deadline creeps forward without any tangible resolution in sight.''
But Vecchio said the US dollar would likely trade at a discount to other safe havens, such as the Japanese yen and the Swiss franc.
The British pound gained to US$1.6093 from US$1.6005 Friday.
The US dollar dropped to 0.9028 Swiss franc from 0.9071.—AFP