Dollar Hits Three-Month Low as Fed Hike Expectations Cool

The US dollar has been hovering near its three-month low, currently trading around 98.80, as expectations for a Federal Reserve rate hike have cooled down.

The probability of a September rate hike has fallen from 47% to 32.7%, according to the CME FedWatch tool, which is contributing to the dollar's decline.

Additionally, the US Treasury announced an expansion of its long-term Treasury repurchase program, doubling the size from $2 billion to $4 billion, putting downward pressure on the dollar.