The dollar index (DXY00) today is up by +0.30% at a four-session high. The dollar is moving higher today on weakness in the yen, which has fallen to a one-week low against the dollar, as expectations rise that new Japanese Prime Minister Takaichi will maintain an expansionary fiscal policy. The dollar also has carryover support from Monday, when US-China trade tensions eased after President Trump said, "I think we're going to be fine with China."
Gains in the dollar are limited after the Oct Philadelphia Fed non-manufacturing business activity survey fell to a 4-month low. Also, the ongoing shutdown of the US government is bearish for the dollar. The longer the shutdown is maintained, the more likely the US economy will suffer, a negative factor for the dollar.
