The US Dollar is holding strong, near a two-month high, supported by broad weakness in other major currencies. The greenback benefited from political developments in Japan and France, and safe-haven demand driven by the ongoing US government shutdown. The future direction remains uncertain as investors await further policy guidance from the Federal Reserve.
- The dollar index held around 98.8, near a two-month high.
- The dollar has climbed more than 3% against the yen this week.
- Conservative candidate Sanae Takaichi’s victory in Japan boosted expectations for higher fiscal spending and continued accommodative monetary settings.
- The dollar advanced nearly 1% versus the euro.
- French Prime Minister Sebastien Lecornu and his cabinet unexpectedly resigned.
- Investors assessed the economic fallout from the ongoing US government shutdown.
- Minutes from the latest FOMC meeting showed mixed views on future rate moves.
- Markets await comments from Fed Chair Jerome Powell later today.
The US dollar is experiencing increased valuation due to a confluence of global and domestic factors. Weakness in other currencies, triggered by political and economic uncertainties in Japan and France, is driving investors to the dollar. Domestic concerns such as the government shutdown are further bolstering the dollar’s appeal as a safe-haven asset.