Dollar rises amid lower risk of US government shutdown

According to Bloomberg, the US Congress is likely to pass a temporary funding bill, which will help avoid a shutdown of the country's government. The news caused a change of sentiment in the markets after the decline in US stocks throughout the week.

The news agency reports that US Treasury bonds eased up some gains of the previous trading session. It happened as investors rushed to safe haven assets, causing a record increase in gold prices and providing support to the dollar. The greenback’s gains continue on Friday, Bloomberg says.

The risk of the US government shutting down was triggered by disputes between the Democratic and Republican parties over the country's budget. Democrats say the bill should include some restraints on spending cuts by the Department of Government Efficiency (DOGE). Chuck Schumer, the leader of the Democrats in the Senate, previously stated the party would overrule the Republicans' bill. However, the politician later retracted his statements, which may help avoid a shutdown of the US government, Bloomberg says.