Dollar Gains Amid Yen Weakness and Political Instability in Asia and Europe

The dollar has continued its impressive performance, buoyed by the yen's struggles amid political shifts in Japan. The election of conservative Sanae Takaichi as head of Japan's ruling party signals potential policy changes that are impacting the Japanese currency.

Meanwhile, political turmoil in France has also contributed to the euro's restraint, providing additional support for the dollar. The euro and yen's shifts have helped the dollar rise by over 1% this week, keeping other major currencies subdued.

The U.S. faces economic uncertainty with a government shutdown affecting data releases. This could challenge the Fed's upcoming meetings, though rate cuts are still anticipated in response to rising job market risks.

(With inputs from agencies.)