US Dollar Index Weakens to Near 101.15 Despite Middle East Tensions

The US Dollar Index (DXY) edged lower to trade near 101.15 during Asian trading hours on Wednesday. The decline comes despite ongoing geopolitical tensions in the Middle East, which typically support safe-haven demand for the dollar.

Market participants are focusing on Federal Reserve policy expectations as a key driver of USD weakness. The index, which measures the greenback against a basket of six major currencies, has retreated from recent highs.

Traders will watch for further cues from economic data and central bank commentary later in the session.