Dollar Tumbles to Two-Month Low on Fading Rate Hike Bets

The US dollar has fallen to its lowest level in over two months after traders pulled back their expectations for further Federal Reserve rate hikes.

The Dollar Spot Index dropped 0.3% to 99.33, taking it below an important technical support level and marking the lowest reading since June 5.

This decline comes after a series of weaker US economic numbers, including a contraction in July payroll data, flat producer prices, and a surprise drop in retail sales by 0.6%.

As a result, markets are now pricing in around a 70% chance that the Fed will keep rates unchanged at its September meeting.