Dollar Rises to Strongest Levels in 2021 Despite Growing Concern Over Government Shutdown

An employee of the Korea Exchange Bank counts U.S. $100 notes during a photo opportunity at the bank's headquarters in Seoul, South Korea, on April 28, 2010. Jo Yong-Hak/Reuters

The dollar has risen to its strongest levels of the year against rival currencies, in spite of growing concern that the Federal Reserve will start to withdraw policy support and as Republicans continue to block Democrat efforts to raise the debt limit, threatening to plunge the government into a shutdown.

The dollar index—which measures the U.S. dollar relative to a basket of foreign currencies—rose to an 11-month high of 93.83 on Sept. 29.