By Polya Lesova, MarketWatch
NEW YORK (MarketWatch) — The U.S. dollar rebounded against the Japanese yen on Tuesday, but moved little against other major currencies as investors stayed focused on the budget stalemate in Washington.
The dollar USDJPY +0.39% rose 0.5% to 97.17 Japanese yen, while the euro EURUSD +0.10% was little changed at $1.3580.
The ICE dollar index DXY +0.02% , which tracks the greenback against a basket of other major currencies, edged up to 79.945, from 79.933 on Monday afternoon.
The WSJ dollar index XX:BUXX +0.02% , a rival measure that pits the greenback against more currencies, gained to reach 72.31, from 72.28 on Monday afternoon.
“The partial shutdown of the U.S. government and the political impasse remains the most important factor, but [Federal Reserve] policy remains a concern as well,” wrote analysts at Brown Brothers Harriman.
The U.S. government has been shut down for more than a week after Congress was unable to resolve a budget dispute. Adding to concerns, Congress needs to raise the country’s debt ceiling by Oct. 17 or the U.S. may default on its debt obligations.
The International Monetary Fund on Tuesday warned that downside risks are building for the global economy, while its chief economist urged U.S. lawmakers to raise the debt limit.
Polya Lesova is chief of MarketWatch’s London bureau.
