Greenback tumbles 0.27% to 97.19, sealing a 10% yearly slide and its worst performance in over two decades
The US dollar declined more than 0.27% Wednesday after Congress failed to reach an agreement on a temporary budget, resulting in a shutdown in the American federal government.
The dollar index, which compares the performance of the dollar to six other currencies, such as the euro and the Japanese yen, fell to 97.19 as of 1335GMT (9.35 am EDT).
The decline resulted in a 10% overall drop for 2025. It is the largest yearly decline in the value of the dollar since 2003, when it dropped 14.6%.
The US Congress failed to agree on a temporary budget, causing a closure of the government, and some key economic data will not be released in the coming days by government agencies because of the shutdown.
The Bureau of Labor Statistics’ emergency plan stated that economic data will not be published during a government shutdown, which means non-farm payrolls, initial jobless claims and inflation figures may be delayed.
While a shutdown does not automatically result in a full-blown economic crisis, it creates major disruptions for many aspects of American life.
Many federal employees will be furloughed, or forced to work without pay, while others will be placed on mandatory leave until a new budget is approved. Each federal agency has its own shutdown plan, determining which government employees are essential.
