1258 GMT - The sustainability of the dollar's recent strength largely depends on the Federal Reserve's policy decision in October, Commerzbank's Thu Lan Nguyen says in a note. If the Fed raises rates and signals further tightening, the dollar should hold onto its gains, she says. Should the Fed increase rates but temper expectations for further near-term rate increases, the dollar could fall modestly. The dollar would weaken substantially if the Fed holds rates steady and indicates the next rate rise will come in December, she says. Against this backdrop, the dollar's strength is "rather fragile" as it appears overstretched. The DXY dollar index falls 0.1% to 101.254, having reached a two-month high of 101.612 Tuesday.