Dollar Surges Amid U.S. Economic Resilience

The U.S. dollar hit an 11-week high after September retail sales exceeded expectations, signaling strength in the U.S. economy. A strong jobs report further boosted optimism. Meanwhile, traders adjusted expectations for the Federal Reserve's monetary policy. The euro and yen weakened while the Australian dollar rose on strong employment data.

The U.S. dollar surged to an 11-week high as retail sales figures for September surpassed expectations, showcasing resilience in the American economy. The uptick in sales from the previous month signaled a robust economic outlook, reinforcing confidence amid a relatively muted response to the European Central Bank's anticipated rate cut.

Retail sales increased by 0.4% in September, up from the 0.1% increase in August, surpassing economist predictions of a 0.3% rise. This development indicates a less dovish Federal Reserve stance as traders adjust their positions in response to shifting expectations surrounding the ECB and Bank of England policies.

The dollar index climbed to 103.70, reaching heights not seen since August 2, while the euro and yen declined. Meanwhile, analysts are adjusting expectations for further rate cuts. In the backdrop of the nearing U.S. presidential election, speculation surrounding potential economic policies under a Trump administration is influencing market dynamics.

(With inputs from agencies.)