The U.S. dollar slipped lower against other major currencies on Friday, as the U.S. government was pushed into a second shutdown since the beginning of the year after a vote on a budget deal was delayed by Congress.
The midnight deadline to pass the budget deal was missed on Thursday night due to a prolonged speech by Senator Rand Paul, who objected to $300 billion in deficit spending in the bill saying that it would “loot the Treasury.”
U.S. congressional leaders had reached a two-year budget deal on Wednesday to raise government spending by almost $300 billion.
However, the greenback’s losses were limited as higher U.S. bond yields turned higher again. The yield on benchmark 10-year Treasury notes was still hovering near recent four-year highs on Friday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.08% at 90.12 by 01:50 a.m. ET (05:50 GMT), off the previous session’s two-and-a-half week high of 90.46.
Meanwhile, USD/CAD held steady at 1.2597.