Dollar Falls to Two-Month Low as Traders Cut Rate Hike Bets

The dollar fell to its lowest level in over two months on Monday as traders trimmed their bets against a U.S. rate hike, citing softer economic data.

This led to a strengthening of the yen, which rose by 0.2% to around 159.04 per dollar, holding below four-decade lows hit in late July just before Japanese and U.S. authorities intervened in currency markets to stem its weakness.

The euro also reached a two-month high at $1.1614, up 0.3%, while the dollar index fell to its lowest since early June.

Market analysts believe that the Federal Reserve's Jackson Hole symposium next week will provide crucial clues on policymakers' interpretation of recent economic data.