The US Dollar Index retreats to a tight range after failing to sustain gains above 99 amid softer economic data.
The US Dollar Index (DXY) has settled into a 98.5–99.0 range after its recent recovery attempt stalled just above 99. The pullback follows last week’s sell-off, driven by rising US long bond yields and weaker-than-expected economic indicators.
Prior to this, the DXY had climbed from a low near 97.5 in early August but failed to break through resistance at 99.5. Analysts note the index remains constrained by mixed US data, including softer inflation and labor market prints, which have tempered expectations for aggressive Federal Reserve tightening.
Market reaction has been muted, with traders awaiting further signals on US monetary policy and economic performance. The dollar’s range-bound movement reflects uncertainty over the Fed’s next moves amid conflicting data trends.