Dollar Struggles Near Two-Month Low Amid Inflation Data Uncertainty

The US dollar is hovering near a two-month low against major currencies as investors await 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, 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.

US Treasury yields fell as the jobs report dashed hike bets, with those on benchmark U.S. 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.