The dollar index (DXY00) today is up by +0.44% at a 1-week high. The dollar is climbing today after French Prime Minister Lecornu resigned, which undercut the euro. Also, the yen tumbled after Sanae Takaichi, a proponent of easy fiscal and monetary policy, won Saturday's election to become Japan's new prime minister. Higher T-note yields today have also strengthened the dollar's interest rate differentials.
The ongoing shutdown of the US government is bearish for the dollar as the shutdown entered its second week today. The longer the shutdown is maintained, the more likely the US economy will suffer, and GDP growth will stagnate, a negative factor for the dollar.
