Dollar Set to Close October on a Strong Note
The dollar index rose for a third straight session on Friday, approaching 99.8, its highest level since early August, and is on track to finish October up about 1.8%, supported by a more hawkish tone from the Fed.
The Fed delivered a widely expected 25bps rate cut but Chair Powell emphasized that a December rate cut is not a foregone conclusion.
Market-implied odds of another cut in December dropped sharply to around 63%, from about 90% before the meeting.
Meanwhile, the Trump–Xi meeting concluded with the US agreeing to lower tariffs on Chinese goods, while China pledged to curb fentanyl exports, increase US soybean purchases, and pause rare earth export restrictions.
Elsewhere, the ongoing US government shutdown showed no signs of resolution, delaying the release of key economic data.
The dollar strengthened roughly 4% against the yen following the election of Prime Minister Takaichi.
It also gained about 2% against the pound and 1.4% against the euro.
Source: Tradingeconomics.com
