U.S. Dollar Drops on Political Uncertainty

The dollar fell versus 11 of its 16 most-traded counterparts as U.S. lawmakers struggled to resolve a political impasse over raising the nation’s debt limit and ending a partial shutdown of the government.

The greenback erased its first loss in five days versus the yen after President Barack Obama summoned congressional leaders to the White House and Democratic and Republican Senate leaders said they’re optimistic about reaching an agreement. New Zealand’s dollar gained after data showed home prices rose to a record. A measure of volatility among Group of Seven nations’ currencies fell to the lowest since January.

“The debt issues are dominating people’s thinking,” Brad Bechtel, the managing director at Faros Trading LLC in Stamford, Connecticut, said in a phone interview. “The market’s not willing to really bet too heavily on the outcome until they really see the news.”

Bloomberg

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