US Dollar Index drifts lower below 99.00 as US government shutdown continues

• US Dollar Index edges lower to around 98.75 in Thursday's Asian session. 
• The deadlock over ending the US government shutdown has entered its ninth day. 
• FOMC Minutes signaled the Fed is open to more rate cuts this year. 

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades on a negative note near 98.75 during the Asian trading hours on Thursday. The DXY edges lower amid US government shutdown concerns.

The US shutdown deadlock deepens as the Senate on Wednesday again rejected dueling Republican and Democratic funding proposals to end the federal shutdown. The deadlock over ending the US government shutdown has entered its ninth day with no hint of progress toward a resolution, raising concerns over the impact on the US economy. This, in turn, could undermine the US Dollar against its rivals in the near term. 

Minutes from the Fed's September meeting released on Wednesday showed that a majority of policymakers supported the September rate cut and signaled further reduction later this year. However, some members favored a more cautious approach, citing concerns about inflation.

According to the CME FedWatch tool, the Fed is widely anticipated to cut rates by 25 basis points (bps) at its October meeting, and markets have priced in nearly a 78% chance of an additional reduction in December.

The US weekly Initial Jobless Claims will be postponed again later on Thursday. Traders will keep an eye on the speech by Federal Reserve (Fed) Chair Jerome Powell later on the same day. Any surprise hawkish remarks from Powell could help limit the DXY's losses.