The U.S. dollar index edged lower to 99.408 at the start of the Asian trading session after dropping for a seventh straight session

The U.S. dollar remained under pressure on Tuesday as weaker-than-expected manufacturing activity data heaped pressure on the country’s central bank to cut interest rates at its policy meeting later this month.

The U.S. dollar index edged lower to 99.408 at the start of the Asian trading session after dropping for a seventh straight session to hit a two-week low during U.S. trading hours on Monday as stocks and bonds declined.

Data released on Monday showed U.S. manufacturing dropped for the ninth consecutive month in November, as the Institute for Supply Management’s manufacturing PMI declined to 48.2 in November from 48.7 a month earlier.

Gauges of new orders and employment also deteriorated, while input prices rose as the drag from import tariffs persisted.

It all suggests to me that demand in the economy has decelerated, said Brian Martin, head of G3 economics at ANZ in London.

I really do think the Fed needs to cut interest rates, and not just cut rates in December, but follow through with further cuts next year, he said on a podcast, adding he forecasts an additional 50 basis points of cuts in 2026.

Fed funds futures are pricing in an implied 88% probability of a 25-basis-point cut at the U.S. central bank’s next meeting on December 10, compared to a 63% possibility a month ago, according to the CME Group’s FedWatch tool.

The yield on the U.S. 10-year Treasury bond was last up at 4.086% after a selloff in global bond markets on Monday.

Against the yen, the dollar traded at 155.51 yen, unchanged from late U.S. levels, after Bank of Japan Governor Kazuo Ueda said on Monday that the central bank would consider the “pros and cons” of raising interest rates at its next policy meeting, sending Japanese two-year yields above 1% for the first time since 2008.

The euro stood at $1.1610, holding steady so far in Asia.