The dollar was little changed Wednesday, recovering from earlier declines, as traders weighed the potential fallout from a U.S. government shutdown.

The dollar index, which gauges the greenback's performance against six rival currencies including the euro and the Japanese yen , was last up just 0.02% at 97.79. Earlier in the day, it fell more than 0.2%, putting it on pace for its worst annual decline in 22 years.

The U.S. government shut down after the Senate short-term funding bill failed to pass, and Democrats led by Senate minority leader Sen. Chuck Schumer and House minority leader Rep. Hakeem Jeffries push for a measure to extend enhanced Obamacare tax credits. President Donald Trump, meanwhile, threatened benefit cuts for "large numbers of people"

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