07.10.202501:48:53UTC+00Dollar Edges Higher as Funding Talks Stall

The dollar index climbed to approximately 98.2 on Tuesday, continuing its upward trajectory from the previous session. This uptick coincided with the seventh day of the U.S. government shutdown, following the Senate's rejection of competing funding proposals from both Democrats and Republicans. Additionally, Democratic leader Chuck Schumer negated President Donald Trump's assertions that discussions with Democrats were underway. In terms of policy developments, recent economic data has heightened expectations for Federal Reserve rate cuts. The market is currently almost fully anticipating a quarter-point rate reduction this month, with another cut expected in December. Investors are now looking forward to further insights from central bank leaders this week, notably from Fed Governor Stephen Miran on Wednesday and Chair Jerome Powell on Thursday. The dollar was further supported by the weakening of the euro and yen, attributed to the resignation of France’s new government and the election of a dovish leader by Japan's ruling party.