Dollar Weakens Against Euro and Swiss Franc Amid Rate Hike Concerns

The US dollar has weakened against several major currencies, including the euro and Swiss franc, as investors reassess their expectations for interest rate hikes in light of recent economic data. According to Kit Juckes, chief FX strategist at Societe Generale, traders are selling off the dollar due to concerns about US economic growth and the Federal Reserve's response to underwhelming data. Last week, the US reported a decline in retail sales for the first time in nine months, adding to unexpected job losses and mild inflation readings.

The euro has hit a two-month high, rising 0.08% to around $1.1578 on Monday. Juckes noted that traders had been pricing in a higher chance of rate hikes at the Fed's September meeting, but now expect just 30.6%, down from 52.2% a week ago.

The dollar has also weakened against the yen, with the Bank of Japan's potential rate hike cycle being closely watched by investors. China's industrial output growth slowed in July, while retail sales grew less than expected, contributing to the dollar's decline.