Currency Markets Wobble Amid US Shutdown and Japan's Political Uncertainty

The dollar experienced its worst weekly performance since July due to the U.S. government shutdown, causing market uncertainty. Meanwhile, the yen faced pressure ahead of Japan's ruling party election. As the euro and sterling rose slightly, traders kept a keen eye on central bank moves and key economic reports.

The dollar's value faltered this week, marking its poorest performance since late July as a consequence of the U.S. government's ongoing shutdown, which has injected notable uncertainty into financial markets.

Simultaneously, the Japanese yen pulled back from its earlier gains as market participants speculated on the Bank of Japan's forthcoming moves, especially with Japan's ruling party leadership election imminent.

Amid these tensions, the euro and sterling both experienced minor lifts, while traders remained focused on speeches from key economic figures and the anticipated effects on market dynamics.

(With inputs from agencies.)