Dollar Declines on US Shutdown Worries, Aussie Rises

The US dollar fell on Tuesday as investors braced for a possible US government shutdown that would delay release of the crucial jobs report this week, while the Australian dollar rose after the central bank struck a cautious tone on inflation.

The Aussie gained 0.49% to $0.66075 after the Reserve Bank of Australia held rates steady as expected.

The broader US currency index dropped 9.7% this year, at 97.928.

The euro was a shade lower at $1.172, while sterling was at $1.3436.

Benchmark 10-year Treasury yields were little changed at 4.142%, after dropping 4.6 bps on Monday. They have dropped 8.3 bps for the month.