The dollar index steadied around 99.6 on Monday after falling for three straight sessions, buoyed by signs that a deal may be emerging to end the record-long government shutdown. Senate Majority Leader John Thune said Sunday that a federal budget agreement is taking shape, potentially reopening the government through January and reversing some recent federal layoffs. Reports also suggested that some Democrats could support the package even without an extension of health care subsidies, though uncertainty remains high. The dollar came under pressure on Friday after the University of Michigan’s consumer sentiment index fell to its lowest level in nearly three and a half years, weighed down by the prolonged shutdown, persistent inflation, and declining personal finances. In monetary policy, markets remain divided on whether the Federal Reserve will cut rates in December, with traders pricing in roughly a 67% chance of a quarter-point reduction, unchanged from Friday.
