Dollar Index Hits 10-Week High

The US Commerce Department announced last week that gross domestic product (GDP) in the third quarter was 3.5% higher than market expectations. Inspired by this news, the US dollar continued to rise. The US dollar index today (29) is almost 10 weeks high.

At 5:49 pm on Monday, Taipei time, data showed that the US dollar index (DXY) against the six major currencies rose 0.21% to 96.56.

In the third quarter of the US, GDP increased by 3.5%, although it was less than 4.2% in the second quarter, but it was better than economists’ estimate of 3.4%.

GDP performance beat expectations, mainly due to strong consumer spending, which offsets unfavorable factors such as reduced corporate investment and falling exports.

Since 2018, the Fed has raised interest rates by 3 degrees; it is expected that the third quarter GDP data will allow the Fed to raise interest rates by 4 degrees in December.

US stocks closed lower on Friday. The Dow Jones Industrial Average closed down 296.24 points (1.19%) to 24688.31 points. The S&P 500 index closed down 46.88 points (1.73%) to 2658.69 points. The Nasdaq index closed down 151.12 points. (2.07%), to 7167.21 points.

Since October, the S&P 500 index has fallen more than 8%, the Dow Jones Industrial Average has fallen more than 6%, and the Nasdaq index has fallen by about 11%.

Asian stocks remained weak on Monday, Shanghai Composite Index closed down 2.18%, Shenzhen Component Index closed down 2.43%; South Korea Kospi index closed down 1.53%, Nikkei 225 index closed down 0.16%; Taiwan stocks closed up 27.14 points, 9516.32 points.

The US dollar continued to rise against the renminbi. As of press time, the US dollar rose 0.21% against to 6.9581.