Dollar Falls Amid Weakened Rate Hike Bets

The US dollar has fallen to its lowest level since early June as traders reduce their bets on interest rate hikes in light of recent soft economic data.

This decline comes despite a run of weaker-than-expected numbers, which have led investors to reassess the likelihood of future rate increases. The euro has reached two-month highs and the yen has strengthened, with the Japanese currency now trading at around 159.15 per dollar.

The yen's gain is notable, as it brushed aside weaker-than-expected economic growth data released earlier this month. This development comes on the heels of interventions by both Japanese and US authorities in late July to stabilize the yen's value.