Dollar Falls as Rate Hike Expectations Strengthen

The US dollar fell 0.07% on Monday (7/9) despite rising expectations of a Federal Reserve interest rate hike, according to idnfinancials.com.

Tensions in the Middle East and concerns over broader inflationary pressures are causing central banks to tighten policy, which is weighing on the dollar's value.

The euro rose to US$1.1618 while sterling was little changed at US$1.3519 against the dollar, but the dollar index fell 0.07% to 99.09, near its recent low of 98.558.

Traders now price in a 57% chance that the Fed will raise interest rates this month following the release of nonfarm payrolls data, and market focus is shifting to US inflation data due on Friday.