The dollar index rose to around 98.2 on Tuesday, extending gains from the previous session as the government shutdown entered its seventh day after competing Democrat and Republican funding proposals failed in the Senate. Democratic leader Chuck Schumer also dismissed President Donald Trump’s claim that talks with Democrats were ongoing. On the policy front, recent data bolstered expectations for Federal Reserve rate cuts, with markets nearly fully pricing in a quarter-point reduction this month and another reduction in December. Traders now await fresh cues from central bank officials this week, including remarks from Fed Governor Stephen Miran on Wednesday and Chair Jerome Powell on Thursday. The dollar also drew support from euro and yen weakness after France’s new government resigned and Japan’s ruling party elected a dovish leader.