The dollar is set to have its strongest month since 2022 due to changing expectations from the Federal Reserve and the upcoming presidential election, which could have a significant impact on macro markets.
On Wednesday, the dollar strengthened against all Group-of-10 currencies, coinciding with an increase in Treasury yields. The Japanese yen saw significant selling pressure, falling below the 153 per dollar threshold, its lowest level in 12 weeks.
Meanwhile, both the euro and the British pound have declined for three consecutive sessions. According to a Bloomberg index, the dollar has gained approximately 3.2% in October, reflecting increased investor activity and market volatility ahead of the election.