FX.co ★ Dollar Index Little Changed

The dollar index steadied around 99.8 on Wednesday as traders continued to evaluate potential actions by the Federal Reserve for the upcoming month. The probability of another 25 basis point rate cut has risen, surpassing 80%, driven by weak U.S. economic indicators and dovish statements from Federal Reserve officials. Investor sentiment received a further boost following Bloomberg's report that Kevin Hassett, the White House National Economic Council Director, is the frontrunner for the next Federal Reserve chair. This choice is perceived to align with President Trump's advocacy for lower interest rates. Meanwhile, the dollar gained strength against the yen, despite reports indicating that the Bank of Japan is preparing the markets for a possible rate increase as early as next month. However, it weakened against both the Swiss franc and the Australian dollar.