Dollar index stays below 101 on fading Fed hike bets, Hormuz risks

The US Dollar Index (DXY) continues to trade below the 101.00 level, extending a consolidative phase for the third consecutive day. The greenback remains under pressure from fading expectations that the Federal Reserve will raise interest rates further, which has weighed on the dollar's yield advantage.

Geopolitical tensions surrounding the Strait of Hormuz have provided some support for safe-haven flows, but this has been largely countered by the dovish Fed outlook. The index is struggling to find a clear directional catalyst amid these conflicting drivers.

Market participants are closely watching upcoming US economic data and central bank commentary for clues on the next move in the dollar. The current price action suggests a period of uncertainty ahead.