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29 Jan 2026

Dollar resumes its decline as shutdown risks fade

Good morning. Risk-sensitive currencies are advancing as shutdown fears recede and investors resume betting on a weaker dollar. According to the New York Times, US president Donald Trump and Senate minority leader Chuck Schumer are nearing a deal that would tighten limits on federal immigration agents and strip funding from the Department of Homeland Security, potentially clearing spending bills before Friday’s midnight deadline and averting another shutdown. The greenback is giving back some of yesterday’s gains, which followed Treasury secretary Scott Bessent’s insistence that a “strong dollar” policy remains in place and that the US was “absolutely not” intervening to...

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