Washington paralysis sends dollar to 8-month low
NEW YORK (AFP) - Washington's budget paralysis and worries it will lock up talks on increasing the US debt ceiling sent the dollar to an eight-month low against the euro on Wednesday.
The second day of a government shutdown, because Democrats and Republicans have not agreed a budget for the fiscal year that began Oct 1, continued to erode confidence in the greenback and other financial markets.
At 2100 GMT, the euro traded at US$1.3580, compared with US$1.3527 late Tuesday.
The yen gained, meanwhile, despite concerns that a new sales tax hike, seen as crucial to shrinking Japan's debt, would derail a budding economic recovery.