US Dollar Index falls to near 99.50 after weaker-than-expected US retail sales data reduces rate hike expectations.
The US Dollar Index (DXY) declined to around 99.50 during Asian trading on Monday, retreating from recent highs. The move follows softer US retail sales data, which missed expectations and prompted traders to reassess Federal Reserve tightening bets.
Prior to the release, the DXY had hovered near 100.00, supported by hawkish Fed commentary. Consensus estimates had anticipated a modest gain in retail sales, but the unexpected drop weighed on the dollar. The index tracks the USD against a basket of six major currencies.
Markets are now pricing in a lower probability of further rate hikes, contributing to the dollar’s pullback.