The dollar index hovered around 99.7 on Tuesday, holding onto the previous session’s gains as investors weighed the Federal Reserve’s next move before key US inflation data. Attention is centered on the consumer price index report due Wednesday and producer inflation figures due Thursday, both of which could shape expectations for whether the Fed tightens policy again. Rate markets are pricing in about a 51% chance of a 25 basis point increase in September, up from 44% a day earlier. Cleveland Fed President Beth Hammack said several rate increases may be needed to return inflation to the central bank’s 2% target. At the same time, uncertainty over a possible US-Iran deal to end the war and reopen the Strait of Hormuz kept markets alert to inflation risks and the broader interest-rate outlook.