US Dollar Index Holds Steady Near 99.50 as Fed Rate Cut Expectations Fade The US Dollar Index is trading with minimal movement, hovering around the 99.50 level. This stability comes as market participants increasingly scale back their expectations for an imminent interest rate cut from the Federal Reserve. Shifting Rate Expectations According to the CME FedWatch Tool, the probability of a 25-basis-point rate cut in December has fallen to just 49%. This diminishing likelihood is providing underlying support for the US dollar. Traders are now looking ahead to the crucial September Nonfarm Payrolls report, scheduled for release on Thursday. This key employment data is highly anticipated, as it is expected to provide fresh guidance on the health of the US economy and the subsequent monetary policy outlook from the Fed.