Dollar Hovers Near Two-Month Low as Investors Await Inflation Data

The US dollar has hovered near its two-month low against major currencies as investors await this week's inflation data for clues on the Federal Reserve's rate path.

The dollar index was little changed at 99.6, near its lowest level since June 2, after a weak July jobs report cooled expectations for a Fed rate hike next month.

Geoff Yu, senior EMEA market strategist at BNY, noted that the weaker US labor-market signal has pulled down real-rate expectations and extended the dollar decline.

The euro edged higher to $1.1558, near its strongest level since mid-June, while sterling was steady at $1.3490, near a five-week peak.