The dollar wobbled against a basket of major currencies and gave up its gains against the yen on Tuesday after the U.S. failed to reach a compromise ahead of the deadline for a looming government shutdown.
The yen bounced back after an earlier downward blip that came after Japan’s Prime Minister Shinzo Abe said he had decided to go ahead with a planned hike in the national sales tax, while the Australian dollar soared after that country’s central bank stood pat.
The U.S. government directed federal agencies to cut back services after lawmakers could not break a political stalemate that sparked new questions about the ability of a deeply divided Congress to perform its most basic functions.
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