Dollar Index Dips Below 101 as Softer CPI Weakens Rate-Hike Bets

The US Dollar Index remains below the 101 level as traders reduce their bets on further Fed rate hikes following the release of softer-than-expected US Consumer Price Index (CPI) data. The USD underperformed against major peers as the market reassesses the monetary policy outlook.

Market participants now see a diminished probability of additional tightening this year, weighing on the greenback. The index, which tracks the dollar against six major currencies, has been under pressure since the CPI release.