Dollar Stalls Near Two-Month Low Ahead of Inflation Data

The US dollar hovered near a two-month low against major currencies on Monday as investors awaited inflation data for clues on the Federal Reserve's rate path. The euro edged higher to $1.1558, nearing its strongest level since mid-June.

According to Geoff Yu, senior EMEA market strategist at BNY Mellon, 'the weaker U.S. labor-market signal has pulled down real-rate expectations, extended the dollar decline... but not yet a clean easing story.'

The futures market has scaled back the chance of a September rate hike to around 44%, from 67% a week ago.

Oil prices rose on Monday, with Brent oil futures last up 1.4% at roughly $85 per barrel amid continued uncertainty over the Strait of Hormuz.