The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending gains for the third successive day and trading around 99.90 during the Asian hours on Wednesday. Traders are likely observing the upcoming inflation report closely due later in the day, as it is expected to play a major role in shaping the Federal Reserve’s (Fed) next interest rate decision. Market expectations remain divided over the central bank's rate trajectory following its decision to hold rates steady in July. The emphasis on inflation as "the biggest problem facing the economy" reinforces a bias toward keeping policy restrictive even as growth and employment show signs of cooling. The FXS Fed Sentiment Index slipped by 0.42 points to 136.59, signaling a modest pullback in perceived hawkishness following the speech.