Dollar Dives as Weak Retail Sales Spark Rate Hike Reversal

The US dollar hit a two-month low at around 99.4 on August 17 and 99.6 on August 18, according to Trading Economics.

This decline marked a significant shift in market sentiment about the Federal Reserve's policy path, driven by weak economic data, including a sharp drop of 0.6% in US retail sales in July, the largest monthly decline in over a year.

Online sales posted a particularly steep 2.2% decline, while motor vehicle and parts dealers saw a 1.8% drop.

Odds of a Federal Reserve rate hike in September plummeted to roughly 30-35%, down from nearly 50% just a week earlier, according to CME FedWatch data.