U.S. Dollar Index Falls 0.1% on June 9 as Markets Await Key CPI Report

On June 9, the U.S. dollar index (DXY) fell 0.1% to 99.95, retreating from a two-month high of 100.21 reached the previous trading day. Forex participants remain cautious ahead of May U.S. consumer price index (CPI) data due on June 10, which is expected to significantly influence interest rate expectations.

Market sentiment was also dampened by President Trump's pledge to respond to Iran's downing of a U.S. Apache helicopter over the Strait of Hormuz, undermining hopes for a U.S.-Iran peace agreement. According to Interactive Brokers senior economist José Torres, market expectations for a CPI reading of 4.2%—the highest since April 2023—suggest relief may be limited. Meanwhile, the new Federal Reserve chair Kevin Warsh will lead the Fed's first policy meeting next week, with rate futures pricing a 69% probability of at least one rate hike in 2026.