LONDON, Oct 1 (Reuters) - The dollar fell to a 1-1/2 yearlow against the safe-haven Swiss franc and an 8-month lowagainst the euro on Tuesday after the U.S. Congress failed toreach an agreement and led to a government shutdown.
Expectations that the shutdown, which in the past has lastedfrom one day to nearly a month, will hurt the economy and promptthe Federal Reserve to keep policy accomodative weighed on thedollar broadly.
The U.S. currency had already been trading near long-termlows before Monday night's stalemate, however, and someinvestors remained hopeful of a swift resolution to thestandoff. By 0654 GMT, the dollar index was down 0.4 percent at 79.918, its lowest since Feb. 13.
The dollar fell to 0.9004 francs, its lowest sinceearly April 2012.
The dollar's woes lifted the euro to its highestlevel since Feb 6, rising to $1.3580, up 0.4 percent on the day.
- government shutdown