NZ dollar weakens as US shutdown looms THE New Zealand dollar weakened as investors favoured less risky currencies amid rising political uncertainty ahead of a potential US government shutdown as Congress fails to reach agreement on the budget. The kiwi slipped to 82.61 US cents from 82.80 cents at the New York close and 82.90 cents at the 5pm Wellington close on Friday. The trade-weighted index fell to 77.05 from 77.30 on Friday. All eyes are on the partisan political brinkmanship in the US Congress as the deadline for a budget deal to avert a government shutdown at midnight on Monday in Washington is closing in rapidly. Over the weekend, Republicans in the House rejected an emergency spending bill approved by the Senate. Failure to pass a bill before the new financial year starts on Tuesday may result in a government shutdown. Investors are now holding their breath to see if a partial US government shutdown can be averted. At this stage, it looks as if we will get a shutdown of some sort," Mike Jones, currency strategist at Bank of New Zealand, said in a note. With markets nervous and risk aversion on the ascendancy, the New Zealand dollar may find it tough going this week. Data scheduled for release in New Zealand is expected to be upbeat, with building permits for August and the ANZ business confidence survey due out. The New Zealand dollar edged up to 88.77 Australian cents from 88.64 cents on Friday ahead of the Reserve Bank of Australia's review of its benchmark interest rate on Tuesday. The local currency weakened to 80.63 yen from 81.76 yen on Friday, it slipped to 61.30 euro cents from 61.47 cents on Friday and weakened to 51.28 British pence from 51.64 pence.