Dollar labours on

The Labor Day national holiday in the US meant the dollar was off to a slow start, but dramatic events later in the week made up for this. The prospect of a possible government shut down in September had been weighing on the dollar, but a surprise decision late on Wednesday to raise the debt ceiling and extend funding until 15th December means that this has been prevented in the short term. The US is still beset by challenges at home and abroad, however, with significant damage in Texas due to the hurricane and from the California wild fires to be addressed as well as the ongoing threat from North Korea. The net result was that despite the decisive action, the dollar remained weakened and struggled to maintain its position.