USD weakens as US shutdown nears end, risk currencies gain

Risk-sensitive currencies are advancing against the US dollar as Senate approval of funding measures signals a potential end to the 40-day government shutdown, the longest in US history. The dollar index has retreated 0.2% to 97.85 as markets anticipate restored government operations and improved risk sentiment. AUD/USD has climbed 0.4% to 0.7025, while NZD/USD gained 0.35% to 0.6780, benefiting from renewed risk appetite. The shutdown resolution removes a key uncertainty that had supported safe-haven dollar demand. House members are expected to vote on funding measures this week, with markets pricing in a high probability of passage. Technical indicators show USD/JPY testing support at 109.50, while EUR/USD approaches resistance at 1.1320. The shutdown's end could accelerate dollar weakness if risk assets continue rallying, particularly benefiting commodity currencies and emerging market pairs.