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Dollar Struggles Near Two-Month Low Ahead of Inflation Data

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The US dollar traded near a two-month low 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, hovering near 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. The dollar index, which tracks the currency against six major peers, was little changed at 99.6, hovering near its lowest level since June 2.

US Treasury yields fell as the jobs report dashed hike bets, with those on benchmark US 10-year notes last at 4.637%. The futures market has scaled back the chance of a September move to around 44%, from 67% a week ago.

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