The US dollar has recorded a rise for the first time in six sessions against a basket of currencies on Friday but remained neat its eight-month low as the political situation remains blocked over the government shutdown. The U. S. dollar index, which tracks the greenback against a basket of six major currencies, was trading 0.5 per cent higher than 80.145.

Investors remained concerned that the continuing shutdown of the US government and failure to raise the debt limit could result in a debt default. Republicans in the house are meeting on the fourth day of the partial government shutdown to discuss strategy on the situation. Many believe that the shutdown will continue until the politicians will agree to raise the debt level in order to avoid a default on debt payments.

Investors around the world have been concerned over the possibility of a default by the US following the shutdown. The default would the first ever if the U. S. Congress doesn't raise the nation's borrowing limit in time. Some also suggest that the shutdown could derail the fragile recovery in the world's largest economy.