DXY Consolidates Below 100 as Markets Await US CPI, Iran Risks Loom

The US Dollar Index (DXY) struggled to build on the prior session's gains, oscillating in a tight band during Asian trading hours. The greenback gauge remained capped below the psychological 100.00 handle, reflecting a cautious market mood.

Traders are looking ahead to the release of US Consumer Price Index (CPI) figures, which could shape expectations for the Federal Reserve's next policy move. A softer inflation print might fuel expectations of a less hawkish Fed, weighing on the dollar, while a strong reading could bolster the currency.

Adding to the cautious tone were escalating geopolitical risks tied to Iran. Any fresh flare-up could trigger safe-haven demand for the dollar, though the immediate reaction has been limited.

Against this backdrop, the DXY was confined to a narrow range, with the spotlight firmly on the CPI data for direction.