Dollar Crumbles as Rate Hike Odds Plummet

The US dollar hit a three-month low as traders lost faith in a potential interest rate hike by the Federal Reserve. The Bloomberg Dollar Spot Index fell to its weakest level since May 15.

A weak jobs report and cooling inflation were key factors contributing to the decline. In July, payrolls fell by 23,000, with revisions cutting May and June's job numbers by a combined 103,000. Unemployment now sits at 4.1%.

The dollar's fall was swift, with traders shifting their expectations of a September rate hike from about 75% in late July to roughly 30%. This drop in odds led to the dollar index falling for a third straight session.

Gold, on the other hand, saw significant gains, increasing by 9.3% over the past month. In contrast, Bitcoin's price rose only 0.7%, underperforming expectations that it would benefit from a weak dollar.