US dollar index gains ground as yen, euro decline

The US dollar index rose today, Oct. 6, as the Japanese yen depreciated after Sanae Takaichi won the leadership of Japan’s ruling party, and as the euro fell following the resignation of the French Prime Minister.

The US dollar index, which gauges the greenback's performance against a basket of six other major currencies, inched up by 0.65% to 98.36 points at 3:03 pm Makkah Time.

Elsewhere, the euro shed 0.6% to $1.1674 following the resignation of French Prime Minister Sébastien Lecornu under mounting pressure from left-wing lawmakers over his budget plans, renewing the political crisis in the eurozone's second-largest economy.

Meanwhile, the pound fell 0.4% to $1.3424, and the US currency rose 1.85% against its Japanese counterpart to 150.18 yen, erasing the gains generated over the past two months.

Lee Hardman, senior currency analyst at MUFG, said the yen could face continued weakness in the coming period after Takeichi's victory in the leadership of the ruling party.

Market forecasts suggest that the new Japan government will adopt a more flexible approach to monetary policy, Hardman added.