2018.01.1901:57:00UTC+00Dollar Weakens Over a Potential U.S. Government Shutdown

The dollar was under pressure on Friday due to worries over a possible U.S. government shutdown.

The dollar index against a basket of six major currencies was flat at 90.502. It had dropped to a three-year low of 90.113 on Thursday and was on track to lose 0.5 percent on the week.

Against the yen, the dollar was 0.1 percent lower at 111.015. It climbed to 111.480 on Thursday before dropping on concerns over a possible U.S. government shutdown as lawmakers struggled to cobble a federal budget deal.

The focus was on whether lawmakers can reach at least a temporary agreement to fund government operations by a deadline on Friday.

The U.S. House of Representatives on Thursday passed a bill to fund government operations through Feb. 16 and avoid agency shutdowns this weekend when existing funding expires. However, the bill must be approved by the Senate, where it faces an uncertain future.

The euro was steady at $1.224 after rising nearly 0.45 percent overnight.

The common currency rose to a three-year high above $1.2300 earlier this week on expectations that the European Central Bank would take steps towards winding back on stimulus measures to normalize monetary policy. The euro's rally was tempered later as some ECB officials voiced worries about the currency's strength.