US Dollar: DXY extends monthly gains – UOB

UOB Global Economics & Markets Research notes the DXY closed at 101.45 on Wednesday, delivering its best monthly gain since June with a 2.0% rise in September. Intraday Dollar strength was briefly tempered by softer US PCE data before recovering into the close. Major pairs such as EUR/USD, GBP/USD and AUD/USD held steady, while USD/JPY finished flat.

Dollar index holds firm into Q4

"The DXY closed at 101.45 on Wed, up modestly from 101.37 the prior day and posting its best monthly gain since Jun (+2.0% in Sep). The dollar's strength was tempered intraday by softer PCE data before recovering into the close."

"Asian currencies broadly strengthened against USD ahead of US PCE data release. IDR found support from Bank Indonesia's explicit commitment to stability through multi-instrument FX intervention with USD/IDR closing down 0.6% to 17,870."

"The S$NEER index is around 1.85% above the mid-point this morning. For today, the 1.5% to 2.0% above the estimated mid-point implies USD/SGD trading range of 1.2761-1.2824."