Dollar Steadies Near 99 Ahead Fed, BOJ Decisions

The U.S. Dollar Index is holding near 99.15–99.35 after recovering from recent losses, though its broader technical bias remains fragile as it trades below key moving-average resistance around 99.63–99.68. A sustained break above that zone could target 100.02, while failure would expose support near 99.12–99.20 and potentially lower levels. The dollar has gained some support from stronger-than-expected core inflation and markets’ roughly 86%–87% probability of a Federal Reserve rate hike this week, but rising rate expectations have not produced a decisive rally. Investors are also watching the Bank of Japan and Bank of England, while the European Central Bank has signaled further tightening, limiting the dollar’s advantage over other major currencies. Oil prices above $100 a barrel, elevated Treasury yields and geopolitical tensions surrounding Iran and the Strait of Hormuz are adding uncertainty to the outlook for inflation, monetary policy and currency markets.