At 16:35 ET (20:35 GMT) the U.S. Dollar Index fell 0.1 % to 99.95, down from a two‑month high of 100.21 recorded the previous session.
Markets are awaiting the May U.S. Consumer Price Index (CPI) release on Wednesday and the Producer Price Index (PPI) on Thursday.
The median CPI forecast is 4.2 % YoY – the highest since April 2023 (37‑month high) – while core CPI is expected around 2.9 %, the strongest since September 2023.
Interactive Brokers senior economist José Torres notes a 69 % probability that the Federal Reserve will raise rates by at least 25 basis points sometime this year.
President Donald Trump announced on Truth Social that the United States will respond to Iran’s alleged shooting down of a U.S. Apache helicopter, reducing optimism about a Washington‑Tehran peace deal.
Bank Indonesia unexpectedly lifted its benchmark policy rate by 25 bps to 5.50 %, prompting the rupiah to gain more than 1 % against the dollar – its biggest daily rise in over a year.
The euro edged higher as investors price in a likely 0.25 % ECB rate hike on Thursday; the Japanese yen weakened past the 160 per dollar level, a threshold that has previously triggered intervention.
