Dollar Falters as Traders Bet Against Fed Rate Hike

The US dollar has been hovering near multi-month lows against most major currencies. This is due to traders scaling back expectations of near-term monetary tightening by the Federal Reserve following signs of softer US economic conditions.

The euro remains firm, trading at $1.1581 in early Asian markets, just shy of its two-month high of $1.1614 reached on Monday. Sterling also held steady at $1.3548, hovering near its three-month peak from the previous session.

The Japanese yen has been under pressure, trading near the 160-per-dollar level despite recent efforts by Japanese and US authorities to support it. The yen's weakness is a notable exception in an otherwise firm currency market.