SINGAPORE, Nov 10 (Reuters) — The U.S. dollar stayed firm in early Asian trading on Monday, supported by renewed global growth concerns following a series of weak economic indicators. However, expectations that Congress may be nearing an agreement to reopen the federal government slightly reduced demand for the greenback’s safe-haven appeal.
The dollar index, which measures the U.S. currency against six major peers, rose 0.2% to 99.740, ending a three-day losing streak as both the yen and euro weakened.
In Washington, Senate Majority Leader John Thune said that bipartisan discussions to resolve the government shutdown had taken a constructive turn, with the Senate preparing for a Sunday vote on a funding measure to keep the government open through January.
“This progress comes just in time,” said Tony Sycamore, a market analyst at IG in Sydney, adding that the U.S. dollar’s late-week decline may now stabilize.
Data released Friday showed the University of Michigan’s consumer sentiment index fell to its lowest level in nearly three and a half years in early November, hovering close to a record low, as the shutdown became the longest in history.
“We now anticipate a renewed slowdown in Asia’s economic expansion since the export front-loading phase has largely ended,” wrote Eric Robertsen, Standard Chartered Bank’s global head of research and chief strategist, in a note.
“With most Asian central banks near the end of their rate-cut cycles, capital inflows into local markets are expected to decelerate,” he said.
Robertsen also warned that the ample global liquidity that buoyed world asset prices in 2025 may become less supportive in 2026, implying potential further upside for the U.S. dollar over the coming year.
According to CME Group’s FedWatch tool, Fed funds futures indicate a 67% chance that the Federal Reserve will cut interest rates by 25 basis points at its December 10 meeting, unchanged from expectations on Friday.
Meanwhile, the euro slipped 0.1% to $1.155, and the British pound traded at $1.314, down 0.2% for the session.
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