The dollar index continues to stay upbeat around a three-month high at 99.66 on Tuesday morning in Asia taking cues from Fed decision to stay cautious on interest rates, reducing possibility of a December rate cut. Powell noted that another rate cut in December is far from certain and also cautioned that policymakers may need to take a wait-and-see approach until official data reporting resumes. Firm US benchmark treasury yields at a three-week high of around 4.1% is also supporting the greenback. Yesterday, Fed Governor Lisa Cook acknowledged increasing labor market risks but stopped short of supporting a December cut, while Goolsbee said inflation remains his main concern. Meanwhile, US government shutdown has now entered its sixth week with no easy endgame in sight amid a deadlock in Congress on the Republican-backed funding bill. Several other Fed officials are due to speak this week. Also, the institute for Supply Management's (ISM) Manufacturing PMI dropped to 48.7 from 49.1 in September, showing a deeper-than-expected contraction and cooling price pressures.
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