LONDON Oct 1 The dollar fell to a 1-1/2 year
low against the safe-haven Swiss franc and an 8-month low
against the euro on Tuesday after the U.S. Congress failed to
reach an agreement and led to a government shutdown.
Expectations that the shutdown, which in the past has lasted
from one day to nearly a month, will hurt the economy and prompt
the Federal Reserve to keep policy accomodative weighed on the
The U.S. currency had already been trading near long-term
lows before Monday night's stalemate, however, and some
investors remained hopeful of a swift resolution to the
standoff. By 0654 GMT, the dollar index was down 0.4 percent
at 79.918, its lowest since Feb. 13.
The dollar fell to 0.9004 francs, its lowest since
early April 2012.
The dollar's woes lifted the euro to its highest
level since Feb 6, rising to $1.3580, up 0.4 percent on the day.