The economic cost of the U.S. government shutdown will keep the U.S. dollar under pressure this week, while the hit on business and consumer confidence could force the Federal Reserve to delay the withdrawal of stimulus until next year, according to CNBC’s latest market survey of currency traders, analysts and strategists.
Many forecast the U.S. dollar index, which measures the greenback’s value against a basket of currencies, to fall to fresh multi-month lows, possibly breaching 79.00. The index was at 79.63 on Monday.
“The dollar has traded very poorly on the back of the debt ceiling resolution against the Japanese yen, the euro and the Australian dollar,” said Jens Nordvig, Global Head of G10 FX Strategy at Nomura.
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