Dollar Struggles Near Multi-Month Lows Amid Reduced Rate Hike Expectations

The US dollar is hovering near multi-month lows against major currencies due to softer Treasury yields and reduced expectations for another near-term Federal Reserve rate increase.

According to Stephen Innes, financial market strategist, the latest dollar weakness is driven by softer US economic readings and changing expectations around Federal Reserve policy.

The release of the Federal Reserve's July meeting minutes is expected to provide further clues on the direction of interest rates, with markets assigning a 67% probability to the Fed holding interest rates at its September meeting.