The US Dollar Index retreats from a three-day rally, trading near 101.50 amid uncertainty over Federal Reserve rate cuts.
The US Dollar Index (DXY) fell to 101.50 during Asian trading, reversing three consecutive sessions of gains. Investors remain cautious as Fed policy signals remain unclear, with markets pricing in potential rate cuts later this year.
The index, which tracks the USD against six major currencies, had climbed earlier in the week on stronger-than-expected economic data. However, lingering doubts over the timing of Fed easing have kept pressure on the greenback.
Traders are awaiting further clues from upcoming US inflation and employment reports, which could sway expectations for monetary policy adjustments.