Dollar Strengthens Amid Hopes of an End to the US Shutdown and Global Growth Concerns
The US dollar strengthened in early Asian trading on Monday, supported by renewed concerns over a global economic slowdown after a series of weak data, while hopes that the US Congress was closer to reaching a deal to end the government shutdown curbed demand for safe-haven assets. The dollar index rose 0.2% to 99.74, snapping a three-day losing streak as the yen and euro weakened.
Market sentiment improved after US Senator John Thune said bipartisan negotiations to reopen the government were showing progress, with a Senate vote planned for Sunday night. However, concerns persisted after US consumer confidence data fell to its lowest level in more than three years due to the impact of the prolonged shutdown.
Analysts expect the dollar to remain strong in the near term, particularly due to global economic uncertainty and the potential for reduced global liquidity next year. Furthermore, the probability of a Fed rate cut in December remains around 67%, making market participants cautious about the direction of future policy. (asd)
Source: Newsmaker.id
