The US dollar barely weakens vs the euro at the Asian session today. The greenback leaped yesterday after the Senate managed to come to terms on the budget issue.
Under the agreement, the spending for defense and certain social programmes will be increased in the next two years. As a result, the stand-off that discredited normal financing of the current government operation may come to an end. Moreover, the budget is to be increased by $300 billion over the same period. It is still necessary to draft the complete bill that should be approved by both chambers of the Congress. The chambers must promptly accept another bill about provisional financing as the current one will expire on Friday morning. In case of a positive determination, the government will get regular and stable funding.
Investors are positive about the budget agreement, as it mitigates risks of another possible government shutdown.
In the morning the euro was recorded at $1.2276 ($1.2264 yesterday). The Wednesday decline was 0.9%.
The greenback posted gains vs the yen reaching JPY 109.63 (JPY 109.33 earlier).
Today the yuan has shown the major slump against the US dollar since August 2015 when Beijing devalued national currency. As a result, the yuan was seen at RMB 6.3207=$1 in Shanghai.