The US dollar opened lower at the start of December as market participants positioned cautiously ahead of next week’s FOMC meeting and growing speculation around who might replace Federal Reserve Chair Jerome Powell.
At 9:50 a.m. in Asia, the US Dollar Index (DXY) traded at 99.372, down 0.11% from the session open.
Last week’s brief outage at CME Group — the world’s largest derivatives exchange operator — temporarily disrupted trading across equities, bonds, commodities, and currencies. FX markets resumed normal activity on Monday, although overall moves remained subdued with traders awaiting key economic releases and events spread throughout the month.
Fed rate expectations and leadership uncertainty pressure USD
Markets currently price an 87% probability of a 25 bps Fed rate cut at next week’s meeting, according to CME FedWatch. Aggressive repricing of easing expectations, combined with reports that White House economic adviser Kevin Hassett is a leading candidate to replace Powell, has weighed heavily on the dollar.
The greenback posted its weakest weekly performance in four months on Friday.
Monitor DXY shifts and Fed expectations in real time.
US Treasury Secretary Scott Bessent said President Donald Trump is likely to announce his preferred candidate for Fed Chair before Christmas, further elevating market sensitivity around leadership signals.
BoJ in focus as yen volatility persists
Traders are also watching upcoming remarks from Bank of Japan Governor Kazuo Ueda for clues on whether the central bank may signal a late-month rate hike to contain yen weakness.
See how a December Fed cut could reshape USD trends.
AsianForexHub Quick View
- USD Index drops to 99.372, down 0.11%
- Markets price 87% chance of Fed rate cut next week
- Kevin Hassett emerges as potential Powell successor
- USD posts weakest weekly performance in four months
- BoJ Governor Ueda’s comments now closely watched for yen direction
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