FX.co ★ Dollar Gains as Govt Shutdown Continues

The dollar index rose above 98 on Monday, recovering from the losses sustained last week as investors assessed the economic consequences of the ongoing government shutdown, which remains unresolved due to lawmakers' inability to finalize a funding agreement. This shutdown has led to the suspension of critical federal programs and the postponement of significant data releases, notably September's jobs report, which was originally set for release on Friday. On the monetary policy front, recent data has bolstered expectations for Federal Reserve interest rate reductions, with the markets nearly fully pricing in a quarter-point cut both this month and another in December. Investors are now keenly awaiting new insights from central bank officials this week, particularly statements from Fed Governor Stephen Miran on Wednesday and Chair Jerome Powell on Thursday. The dollar experienced its most substantial gains against the yen, rising by over 1% following a ruling party decision that positioned fiscal dove and pro-stimulus advocate Sanae Takaichi as a potential successor to Japan's prime minister.