Dollar Rebound Dented by Slowing Fed Hike Bets

The US Dollar's recent rebound against major currencies has been dented by slowing Federal Reserve hike bets, following a slew of economic data releases last week.

Economic data from the US Bureau of Labor Statistics showed that headline annual inflation edged down to 3.4 percent in July, while core component inflation also decreased to 2.5 percent.

Additionally, producer price inflation came in flat in July, missing market expectations of a 0.2 percent increase, and retail sales fell 0.6 percent month-on-month in July, sharply missing forecasts for a 0.1 percent rise.

As a result, rate hike expectations from the Federal Reserve decreased, with the likelihood of a Fed rate hike in September dropping to 33 percent by Friday, down from over 52 percent on Monday.