Dollar Slides Amid Inflation Anxiety

The US dollar hovered near its lowest level in two months on Monday as investors awaited this week's inflation data for clues on the Federal Reserve's rate path.

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

The yen held firm at 157.90 per dollar, having given back some intervention-driven gains but remaining well off the roughly 164 multi-decade low hit late last month.

Data on Friday showed the US economy unexpectedly shed jobs in July and job gains for the prior two months were revised sharply lower, cooling expectations for a Fed rate hike next month.