09.10.202501:53:00UTC+00Dollar Holds Near 2-Month Peak

The Dollar Index saw a slight dip below 98.8 on Thursday, remaining close to the two-month peak reached in the previous session due to the sustained weakness of major world currencies. This week, the US dollar has risen by over 3% against the yen following the victory of conservative candidate Sanae Takaichi in Japan's leadership election, which heightened expectations for increased fiscal spending alongside ongoing accommodative monetary policies. Similarly, the dollar rose by almost 1% against the euro in the wake of the unexpected resignation of French Prime Minister Sébastien Lecornu and his cabinet, although President Emmanuel Macron is anticipated to appoint a successor shortly. Investors are also closely monitoring the economic repercussions of the current US government shutdown, which has led to a surge in demand for safe-haven assets. In terms of policy, the minutes from the recent Federal Open Market Committee (FOMC) meeting indicated divided opinions on future interest rate adjustments, while markets are keenly awaiting remarks from Federal Reserve Chair Jerome Powell due later today.