The dollar index (DXY00) on Thursday fell by -0.14%. The dollar moved lower on Thursday amid concerns about a potential US government shutdown this weekend, and renewed US-Iran tensions are weighing on the dollar. Also, Thursday’s news showing the US Nov trade deficit rose more than expected to a four-month high was also bearish for the dollar.
The dollar recovered from its worst levels on Thursday as short covering emerged on signs that a deal to fund the government was close at hand. Senate Majority Leader Thune said an emerging deal would put the Department of Homeland Security on temporary stopgap funding while other agencies would get funding through September 30. Also, Thursday’s news that showed Nov factory orders posted their biggest increase in six months was supportive for the dollar.
