Dollar Index Stalls Near 100.00 as Fed Hike Bets Fade

The US Dollar Index (DXY), which measures the greenback against a basket of major currencies, remains capped around the 100.00 psychological mark. After a bounce following CPI data, the index has failed to build follow-through momentum and is drifting lower during the Asian session.

Softness in the dollar comes as market participants scale back expectations for additional Federal Reserve rate hikes, reducing a key source of support. Traders are watching whether the index can hold near 100.00 or extends its pullback.