Dollar edges higher as US outlook mulled

The dollar index rose to around 98.7 on Tuesday, hitting a near one-week high as investors continued to assess the impact of the ongoing government shutdown, trade-related and monetary policy uncertainty on the US economic outlook.

National Economic Council Director Kevin Hassett said the shutdown could end this week, raising hopes of an end to the economically disruptive stoppage.

On the trade front, President Donald Trump said he expects to reach a fair trade deal with Chinese President Xi Jinping at a meeting in South Korea later this month.

Meanwhile, investors are awaiting Friday’s September CPI report amid limited data releases caused by the shutdown.

Markets widely expect the Federal Reserve to deliver a 25-basis-point rate cut next week, with additional reductions likely in December and into next year.