The dollar remains supported despite stronger global risk appetite, with the DXY dollar index (gauge of the US currency against major peers) around 100.4 on Tuesday, just below a seven-week high. The Nasdaq Composite reached a record and Asian equities rallied, while oil fell and Bitcoin surged. Traders now see roughly a 56% probability of another Federal Reserve (US central bank) rate increase in October, up from 43.5% a week earlier, after last week’s hike and warning that the inflation fight was unfinished. Higher expected US rates are supporting dollar deposits and short-term Treasuries. USD/JPY was near ¥157.50, while the approximately 275-basis-point US-Japan rate gap continues to support yen-funded carry trades (borrowing yen to buy higher-yielding assets). The euro- and pound-related pairs cited remained around $1.1470 and $1.3370, respectively, without mounting a significant challenge to the dollar. China’s yuan strengthened toward 6.695 per dollar, its strongest level in more than three years, after the People’s Bank of China eased resistance to appreciation ahead of this week’s Trump-Xi summit. The DXY’s 100 level is the key technical pivot: holding above it would preserve the recent breakout, while a sustained break below could indicate that lower oil prices and Treasury yields are beginning to outweigh the Fed’s hawkish stance. US flash PMIs and Federal Reserve officials’ speeches will test expectations for another increase.