The US Dollar Index rises ahead of key inflation data that could influence the Federal Reserve’s next rate decision.
The US Dollar Index (DXY) extended gains for a third day, trading near 99.90 in Asian hours as investors awaited US inflation figures. The data is expected to shape the Federal Reserve’s interest rate outlook, with markets assessing whether inflation is cooling enough to deter further hikes.
Analysts note that the trajectory of price pressures remains central to the dollar’s medium-term policy backdrop. The Fed held rates steady in July, but rising crude oil prices have fueled speculation about a more aggressive stance. Market expectations remain divided on the central bank’s next move.
Safe-haven demand also supported the dollar amid uncertainty over Middle East peace talks. Reports of progress in negotiations between Washington and Tehran were tempered by US demands for reparations, adding caution to trading sentiment.