Dollar Holds at Two-Month High; Euro-Yen Under Political Pressure
The US dollar strengthened and held near a two-month high, as it moved into the $98.9–$99.5 range. The greenback's gains were driven by weakness in other major currencies, particularly the euro and yen, so risk-off flows remained in favor of the dollar despite increased volatility.
Meanwhile, in Europe, the French political crisis weighed on the euro after Prime Minister Sébastien Lecornu resigned and Emmanuel Macron targeted the appointment of a new prime minister within the next 48 hours.
In Japan, Sanae Takaichi's victory as LDP leader was perceived as pro-stimulus and loose monetary policy, weighing on the yen, with the market eyeing the USD/JPY 152–153 area, which is sensitive to intervention issues.
On the policy front, the September FOMC minutes confirmed rising labor market risks and left room for further cuts this year, a narrative reinforced by comments from John Williams (NY Fed) who supported additional cuts before the end of 2025. Against this backdrop, the USD's near-term direction remains shaped by Treasury yields and French-Japanese political headlines.
Source: Newsmaker.id
