Dollar Gains as Oil Prices Rise Ahead of US Inflation Report
The US dollar gained on Monday as oil prices rose ahead of the closely watched consumer price inflation report for July. The report, due out on Wednesday, could spark another shift in expectations if it points to a reacceleration in price pressures.
Fed funds futures traders are now pricing in 52% odds of a hike at the Fed's September meeting, down from 67% a week ago. Analysts say slowing job growth and easing oil prices have both contributed to the lower odds of a near-term hike.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.20% to 99.80. The euro was down 0.13% at $1.1542.
The Japanese yen weakened 0.84% to 159.14 per dollar, on pace for its steepest daily decline against the greenback in almost five months.