Dollar on the defensive before data releases, risk of US government shutdown

SINGAPORE, Sept 29 (Reuters) – The dollar was on the defensive on Monday ahead of a slew of U.S. economic releases that could provide further clarity on the Federal Reserve’s rate path, while the growing risk of a government shutdown there also came into sharp focus.
Currency moves were largely subdued in the early Asian session, though the dollar gave up some gains after ending last week stronger on the back of reduced Fed rate-cut bets.
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Against the yen , the dollar was down 0.2% to 149.24, after having risen over 1% against the Japanese currency last week.
The euro rose 0.15% to $1.1717, while sterling edged 0.11% higher to $1.3418.
Top of investors’ minds was a looming U.S. government shutdown should Congress fail to pass a funding bill before the fiscal year ends on Tuesday.
Without passage of funding legislation, parts of the government would close on Wednesday, the first day of the U.S. government’s 2026 fiscal year.
That would have implications for the release of Friday’s closely watched nonfarm payrolls report.