Dollar Hits Over Two-Month High
The dollar index extended gains for a third consecutive session, rising above 98.9 on Wednesday to its highest level since early August, supported by weakness in other major currencies.
The greenback strengthened most notably against the yen, amid expectations of large-scale fiscal stimulus in Japan under new government leadership. It also advanced against the Swiss franc and the euro, with the latter pressured by ongoing political turmoil in France.
Meanwhile, minutes from the latest FOMC meeting indicated that Fed officials see increasing downside risks to employment, even as concerns about inflation persist. Around half of policymakers anticipated two additional interest rate cuts by the end of 2025. Markets have fully priced in a 25-basis-point rate cut later this month, while the probability of a similar move in December stands at around 78%. Meanwhile, the government shutdown has entered its second week.
Source: Tradingeconomics.com
