The dollar index hovered around 97.9 on Friday, pausing its recent slide as investors awaited the latest PCE price index, the Federal Reserve’s preferred inflation gauge, for fresh policy direction. Core PCE is projected to rise 2.9% year-on-year in July, marking the fastest pace in five months. Revised figures released Thursday also showed the US economy grew slightly faster in Q2, driven by stronger business investment and trade. Late Thursday, Fed Governor Christopher Waller signaled support for starting rate cuts next month and said he “fully expects” further reductions to bring policy closer to a neutral setting. The dollar index is set to lose more than 2% in August as traders ramp up bets on Fed easing, with markets now pricing in an 86% chance of a 25 basis-point cut in September. The greenback posted its sharpest monthly declines against the euro, sterling, and yen.