Forex
Dollar Extends Dominance Amid Geopolitical Tensions
The US dollar continued its dominance over major currencies, holding near two-month highs on Thursday. The greenback's strength is attributed to persistent geopolitical tensions and elevated energy cost inflation.
Despite softer-than-expected US inflation figures, which trimmed money-market bets for an October Federal Reserve interest rate increase, global borrowing costs remain high due to heavy sovereign debt issuance. This has provided sustained structural support for the dollar.
The euro slipped 0.1% to $1.1300, adding to its 2.5% monthly decline in September. The single currency remains constrained by France's fiscal pressure and persistent cost-push inflation across the Eurozone.