Dollar Dips as Fed Hike Bets Ease Amid Weak US Data

The US dollar continued its downward trend as weak economic data reduced bets for a Federal Reserve interest rate hike next month.

A Bloomberg gauge of the currency's strength slipped 0.1%, hovering around levels last seen in May, after Friday's retail sales data showed a decline in July by the most in over a year.

Swaps traders now see only a one-in-four chance that the Fed will raise interest rates next month, down from a 50% chance just a week ago.