The U.S. Dollar Index remained below 99.00 at about 98.85 in mid-session trading, down from an April peak above 100.00 and an earlier level near 105.5, while the 10-year Treasury yield steadied around 4.20% after sharp swings. Softer U.S. economic data, expectations for a possible Federal Reserve rate cut, and pro-risk sentiment have weighed on the greenback. ING said improving global growth prospects and stabilizing commodity prices are reducing demand for the dollar as a safe haven and encouraging flows toward higher-yielding and riskier assets. Futures pricing indicates roughly a 60% chance of a rate cut by September, although the Fed remains data-dependent and markets are also considering a possible pause in rate hikes. The dollar could weaken against the euro, British pound, Australian dollar and Canadian dollar, while unexpected inflation, a more hawkish Fed, falling global equities, trade tensions or geopolitical instability could revive safe-haven demand. A weaker dollar can support oil, gold, U.S. exports, foreign earnings reported by multinational companies and emerging-market currencies, but may raise import costs and inflationary pressure. Investors are watching U.S. inflation, employment and consumer sentiment data, Federal Reserve communications, trade negotiations, global growth and geopolitical developments.