(MENAFN) The U.S. dollar experienced a notable drop of over 0.27% on Wednesday following the inability of Congress to finalize a provisional funding deal, which consequently led to a partial shutdown of the federal government.

The dollar index — which evaluates the greenback’s strength relative to a group of six major currencies including the euro and the Japanese yen — slid to 97.19 by 1335GMT (9:35 a.m. EDT).

This downturn has contributed to a 10% overall depreciation in 2025, marking the steepest annual fall since 2003, when the dollar plunged by 14.6%.

This political stalemate in Congress not only prompted the government’s closure but also resulted in the suspension of the release of key economic indicators.

According to the Bureau of Labor Statistics’ emergency strategy, no economic figures will be published during the shutdown.

This includes critical data such as “non-farm payrolls,” “initial jobless claims,” and “inflation figures,” which are expected to be delayed.

Although a government shutdown doesn’t inherently spark a widespread economic meltdown, it does significantly interfere with numerous facets of daily life in the U.S. A substantial number of federal workers will either be furloughed or compelled to continue working without receiving pay.

Others will be placed on enforced leave until lawmakers can pass a new budget.

Each government body enacts its own contingency plan to determine which roles are deemed essential during the shutdown.

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