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Dollar index slips near 101.50 as traders weigh Fed timing

Markets are pricing about a 38% chance of a July rate hike, while the odds of at least a 25-basis-point hike in September are about 81.4%.

Reported · Written up by our desk · Major Pairs

The US Dollar Index, which tracks the greenback against six major currencies, eased after three straight days of gains and was around 101.50 during the Asian session Tuesday, according to FXStreet.

The move came as traders stayed cautious ahead of the Federal Reserve policy decision on Wednesday, with the CME FedWatch Tool showing uncertainty around the near-term rate path.

FXStreet also cited expectations that markets are looking for potential July tightening, alongside a much higher likelihood of further tightening later in the year, including roughly an 81.4% chance of at least a 25-basis-point hike in September.

The brief also pointed to Middle East developments, including Washington suspending a 13-night strike campaign over the weekend and Tehran saying it has no direct negotiations with the US, noting that calmer oil prices may help ease broader inflation and monetary policy concerns.

Latest closeDollar index 101.51 ▲0.0%

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