The U.S. dollar weakened to a one-week low on Tuesday as the federal government officially shut down at 04:00 GMT after lawmakers failed to approve a stopgap spending bill.

The political deadlock has raised fresh concerns about economic stability, with the shutdown expected to delay the release of key economic indicators, including the closely watched nonfarm payrolls report. The lack of data complicates the Federal Reserve’s assessment of interest rate policy, fueling uncertainty in global markets.

Investors have responded by shifting to traditional safe-haven assets. Gold prices surged to record highs, while global stock markets retreated on fears of prolonged fiscal paralysis in Washington.

Analysts say the dollar’s retreat underscores investor unease. “The shutdown highlights both political dysfunction and the risk of a data blackout, making it harder to gauge the economy’s true trajectory,” one strategist told Reuters.

With Congress still deadlocked, financial markets are bracing for further volatility. A protracted shutdown could deepen the dollar’s weakness and intensify pressure across equities, bonds, and commodities.