Today's Edition
LONDON (REUTERS)
The dollar rose on Thursday, adding to a strong run this week. As for markets, they have grappled with a lengthening US government shutdown.
The euro has been struggling following the resignation of France's Prime Minister Sebastien Lecornu and his government earlier this week. But President Emmanuel Macron still surprised markets with plans to appoint a new prime minister this week.
The single currency last traded 0.2% lower at $1.1609, after touching its lowest level since the end of August on Wednesday. It is down almost 1% this week so far.
Similarly, the yen has been under pressure this week after Sanae Takaichi was picked as head of Japan's Liberal Democratic Party, putting her on course to become the country's first female prime minister.
The Japanese currency was last down 0.27% at 153.07 per dollar, levels last seen in February. It has fallen more than 3.8% for the week thus far.
"In the absence of US data, FX markets have largely focused on French and Japanese politics," said Chris Turner, head of markets at ING.
The moves in the yen and the euro have, in turn, provided support for the dollar, which rose to a two-month high, last up 0.20% to 99.038.
Federal Reserve officials agreed at their recent policy meeting that risks to the US job market had increased enough to warrant a rate cut.
But they remained wary of high inflation amid a debate about how much borrowing costs were weighing on the economy, minutes of their September meeting showed on Wednesday.
A prolonged US government shutdown could leave the Fed flying blind at its October meeting as economic data is delayed.
Still, investors continue to price in a 25 basis point cut for its next meeting.
