The dollar index steadied around the 100 mark on Wednesday, remaining subdued as investors continued to assess the outlook for Federal Reserve monetary policy. Traders also digested data showing US retail sales rose 0.2% month-on-month in June, the lowest reading in three months and below forecasts for a 0.5% gain. Still, the dollar remains close to its lowest levels in over a year as easing US inflation raised hopes that the Fed may be nearing the end of its current monetary policy tightening cycle. However, the US central bank is widely expected to raise interest rates by 25 basis points this month, while traders scaled back bets of further rate increases this year. Market pricing also suggests that the Fed could start cutting rates next year. The greenback hovered at a near 17-month low against the euro, while its gained some footing against the sterling, yen and antipodean currencies.
