DXY Loses Ground Amid Fed Policy Uncertainty

The US Dollar Index (DXY) has lost ground after three days of gains and is currently trading around 101.50 during the Asian session on Tuesday.

The Greenback's movements are being cautious ahead of the Federal Reserve's policy decision on Wednesday, with markets pricing in nearly a 38% chance of a rate hike in July, an unusually high level of uncertainty so close to a meeting.

Citadel Securities expects the Fed to deliver a rate increase to solidify Chairman Kevin Warsh’s inflation-fighting credibility following his repeated promises to restore price stability.