The dollar index held around 96.7 on Wednesday, hovering at 2,5-month lows and down about 1% so far this week, as investors geared up for the upcoming Federal Reserve monetary policy decision. The Fed is widely expected to deliver a quarter-point rate cut later in the day, with markets pricing in roughly 67 basis points of total easing by year-end. Those expectations have been underpinned by data showing a cooling labor market, even as inflation remains above the Fed’s 2% target. Investors will also scrutinize the central bank’s quarterly “dot plot” projections for signals on the rate path. On the data front, US retail sales rose in August for a third straight month, posting a broad-based gain that capped a resilient summer of consumer spending. The dollar slipped across major peers, touching a four-year low against the euro.