The US dollar index inched marginally higher to 98.5 on Monday as broad weakness for G10 currencies offset the impact of a prolonged government shutdown, uncertainty in US trade, and the outlook of lower rates by the Federal Reserve. The euro edged lower after S&P delivered a surprise rating downgrade for France as its political uncertainty worsens the fiscal backdrop in the Eurozone. The yen was also pressured on the near-confirmation of incoming PM Takaichi, seen as fiscally-dovish. In the meantime, the Fed is still expected to deliver another 25bps rate cut next week ahead of the September CPI report due Friday. The ongoing government shutdown has halted the release of key data that the Fed uses to set policy decisions, but private surveys largely reflect a deterioration in the labor market. Also, Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are set to meet this week in an effort to defuse tensions ahead of a possible Trump-Xi meeting later this month.