Robust U.S. manufacturing data kept the dollar off eight-month lows against a basket of currencies, despite concerns over how long the partial U.S. government shutdown might last while lawmakers search for a compromise deal on the budget.
Some traders expect more market volatility ahead, with no signs in sight of an end to Washington’s political deadlock, though markets appeared hopeful the shutdown would be short-lived.
“It’s probably just calm before the storm. It seems like there will be no solution in the near-term,” said a currency trader at a Western bank in Tokyo. “To me, the markets are becoming a bit complacent about it.”
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