2018.01.2201:55:00UTC+00Dollar Rebounds after Sliding Earlier on U.S. Government Shutdown

The U.S. dollar regained some ground after falling earlier on a U.S. government shutdown, shored up by higher government bond yields, while investors took the Washington stalemate with a relatively calm attitude.

Effective midnight on Friday, the U.S. government ran out of funds, promptly shutting it down, after the Democrats and Republicans failed to reach a last minute deal. The issue of immigration and border security hindered the chamber from reaching an agreement.

In order to break the deadlock, Republican and Democratic leaders of the U.S. Senate engaged in talks on Sunday. The Senate was expected to hold a vote on whether to advance a spending bill that would provide funds for the federal government through Fed 8.

The dollar index against a basket of six other major counterpart currencies initially declined to stand at 90.155, but was last up 0.07 percent at 90.634, managing to remain above the three-year low of 90.113 hit on Thursday.

The euro was mostly unchanged at $1.2227 after declining to $1.2275, and failing to return to a three-year high $1.2323 that it reached on Wednesday.

The dollar trimmed its earlier losses and was flat at 110.810 yen, with a significant gap from a four-month trough of 110.190 hit on Wednesday.