EUR/USD above 1.36 after U.S. Shutdown

The dollar slid to an eight-month low versus the euro as the U.S. government’s partial shutdown continued, adding to concern it will slow economic growth and postpone a tapering of monetary stimulus.

House Speaker John Boehner said President Barack Obama refused to negotiate in a meeting with the top four congressional leaders about the shutdown. U.S. lawmakers still need to agree on raising the debt limit to avoid a default after Oct. 17. Euro demand was bolstered before a report forecast to show retail sales in the currency bloc rose in August. The yen retreated as Asian stocks rallied.

“The focus is on the U.S., and the ongoing pushback we’re seeing in tapering expectations, and the toll that’s taking on U.S. bond yields and the U.S. dollar,” said Mike Jones, a currency strategist at Bank of New Zealand Ltd. in Wellington. “The fiscal shenanigans in Washington mean more potential for volatility and choppiness.”


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