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

The US dollar is hovering 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.

Data from last Friday showed an unexpected decline in July jobs, with job gains for the prior two months revised sharply lower.

This has cooled expectations for a Fed rate hike next month, causing the US Treasury yields to fall to 4.637%.

The dollar index is little changed at 99.6, near its lowest level since June 2, while the euro is near a two-month high at $1.1558 and sterling is steady at $1.3490.

Geoff Yu, senior EMEA market strategist at BNY Mellon, believes that perceptions around US inflation data will be the biggest factor for currencies this week.