The dollar index steadied at 97.4 on Tuesday, lingering near its weakest level in almost seven weeks as mounting concerns over a cooling labor market strengthened expectations for Federal Reserve rate cuts. Investors awaited US benchmark revisions for employment covering April 2024 to March 2025, with economists projecting downward adjustments of up to 800,000 jobs, a signal the Fed may be lagging in its mandate to maximize employment. Attention also turned to two key inflation reports due this week that could shape the next policy decision, with the August producer price index out Wednesday and the consumer price index on Thursday. Markets currently see an 89% chance of a 25 basis point cut at next week’s meeting, while some participants are positioning for a larger 50 basis point move.