US Dollar Index Subdued Near 101.50 on Fed Uncertainty

The US Dollar Index retreated in the Asian session, giving back some of the gains accumulated over the prior three days. Trading near 101.50, the DXY faced renewed pressure as investors weighed mixed signals on the Federal Reserve’s next steps.

The index, which tracks the greenback against a basket of six major currencies, remains capped by uncertainty around the timing of potential rate adjustments. The pullback suggests near-term caution after a brief recovery rally.

Traders are watching upcoming data and Fed commentary for clearer direction, with the 101.50 level serving as a near-term pivot for further moves.