US Dollar Index Hits 98.5, Highest in Over Two Weeks Amid Anticipation of Key US Data

The US Dollar Index rose to 98.5 points, reaching its strongest level in more than two weeks as investors concentrated on a series of US economic data releases considered highly influential for future monetary policy direction.

The dollar's movement occurred amid recent indicators of declining economic momentum, with manufacturing sector data coming in weaker than expected and a downward revision to services activity, heightening anticipation around the timing of interest rate cuts.

Meanwhile, Federal Reserve officials signaled that monetary policy decisions will require precise estimates in the coming period.

Markets are currently pricing in two rate cuts this year, with broader expectations of further easing in 2026. On the major currency front, the dollar posted clearer gains against the Swiss franc and euro, even as the euro received partial support from lower-than-expected inflation data in Germany and France.