Currency Rollercoaster: Yen Drops Amid U.S. Shutdown Resolution

With the yen at its lowest since February, global currencies are reacting to the anticipated resolution of the U.S. government shutdown. The Senate has passed a funding deal, possibly concluding the longest shutdown. Market watchers await the House's next move, with potential currency fluctuations looming.

The yen has reached its lowest point since February, as optimism grows over the end of the U.S. government shutdown. Riskier currencies, including the euro and sterling, have held their ground, driven by the Senate's late Monday approval of a deal to restore federal funding.

The next critical step involves the House, where Speaker Mike Johnson aims to pass the shutdown-ending bill by Wednesday, rallying anticipation for President Donald Trump's signature. In the currency market, significant movements include the Australian dollar's 0.7% increase to $0.6536, while the yen continues to decline after Sunday's breakthrough Senate vote.

Analysts remain cautious, as setbacks in the deal's finalization could disrupt trading liquidity. Market observers are also eyeing key economic reports due this session, which include New Zealand's inflation expectations and wage data from Britain. Of note, the New Zealand dollar struggles against the Australian dollar due to differing regional interest rate forecasts.

(With inputs from agencies.)