The Dollar Index, or DXY (gauge of the U.S. dollar against major currencies), is at 99.07 after four weeks in a narrow range as investors assess inflation, interest rates and demand for U.S. assets. The Federal Reserve has held rates at 3.50%–3.75%, while August producer inflation reached 5.4% year-on-year, the U.S. added 162,000 jobs last month and Brent crude rose above $100. Those conditions support a hawkish Fed stance, although higher rates elsewhere are limiting the dollar’s advantage. The ECB raised its deposit rate to 2.50% on Thursday, while the Bank of Japan is expected to raise rates to 1.25% next week. U.S.-Japan intervention has helped the yen strengthen from almost 164 per dollar in July to about 155. Futures imply roughly 70% odds of a Fed hike next week, while a Reuters poll published Wednesday found about 70% of economists expect no change. Technically, a weekly close above 101.98 would improve the dollar’s bullish outlook, while a move below 97.63 would revive the broader downtrend. The daily chart remains weaker after DXY broke its 2026 rising trendline in August and failed to reclaim it, with resistance around 100–100.60. Friday’s U.S. Consumer Price Index, expected to show 3.4% annual inflation, could shape the next move, followed by the Fed meeting on September 15–16 and the Bank of Japan meeting on September 17–18.