Dollar index pulls back from around two and half month high

The dollar index is seen pulling back from a near two and half month high on Friday morning in Asia after having surged over half a percent in its previous session. The greenback gained strength tracing sharp weakness in its basket currencies namely euro and yen amid geo political tensions. Yen plunged after Sanae Takaichi won Japans leadership race, reinforcing expectations of higher spending and loose monetary policy and euro was hammered amid political turmoil in France. Meanwhile, minutes from the Fed's September meeting released on Wednesday showed that a majority of policymakers supported the September rate cut and signaled further reduction later this year, adding pressure on greenback. Also, in US, the government shutdown entered its tenth day on Friday as the Senate rejected funding bills from lawmakers that had the potential to bring the shutdown to an end. The dollar index that measures the greenback against a basket of currencies is quoting at 99.08, down 0.21% on the day.

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