FX.co ★ Dollar Strengthens Toward August Peak

On Monday, the dollar index increased to 98.4, nearing its high from August, buoyed by international political events impacting the euro and the yen. The euro saw a decline following the resignation of yet another French Prime Minister, fueling apprehensions regarding the government's capacity to effectively tackle the nation's substantial fiscal deficit and debt. Concurrently, in Japan, the yen experienced a significant drop after Sanae Takaichi was elected as the head of the ruling Liberal Democratic Party, which raised expectations for further fiscal stimulus measures. In the US, the federal government shutdown extended into its sixth day after US Senators, for the fourth time on Friday, were unsuccessful in endorsing budget proposals to resume government operations. Senators are scheduled to reconvene on Monday to vote once more on a Democratic funding initiative, which includes healthcare priorities, alongside a Republican-driven temporary funding bill.