The US Dollar Index (DXY) held firm above the 99.50 level during Asian trading on Tuesday, but upside momentum remained limited as investors balanced hopes of a US government reopening against rising Federal Reserve rate cut expectations.

The Senate’s progress toward ending the 41-day government shutdown lifted market sentiment, though traders stayed cautious ahead of a series of Fed speeches later this week.

According to the CME FedWatch Tool, markets are pricing in over a 60% chance of a December rate cut, following weak consumer sentiment data showing confidence at its lowest since 2022.

With US banks closed for Veterans Day, the Greenback is likely to remain range-bound near current levels, awaiting fresh direction from FOMC policymakers.

📊 Outlook: DXY support seen at 99.20, resistance near 100.00.