The US Dollar Index weakens in Asian trading after failing to sustain gains above 100.00 amid cooling bets on Federal Reserve tightening.
The US Dollar Index (DXY) retreated below the 100.00 level during Asian trading, unable to extend its post-CPI rally as markets scaled back expectations for further Federal Reserve rate hikes. The index, which measures the greenback against a basket of major currencies, struggled to hold momentum after recent inflation data failed to reinforce hawkish policy bets.
Prior to the latest pullback, the DXY had climbed modestly following softer-than-expected US inflation figures, which initially supported hopes for a Fed pivot. However, traders now price in a lower probability of additional tightening, weighing on the dollar’s appeal. The index remains near key technical levels, with support seen around 99.50.
Currency markets showed muted reaction, with the euro and yen steadying against the dollar. Analysts suggest further direction will hinge on upcoming economic data and Fed commentary.