Dollar Weakens as Rate-Hike Bets Fizzle Out

The US dollar has weakened to multi-month lows against major currencies as investors scale back expectations of a near-term Federal Reserve rate hike.

According to the CME FedWatch tool, there is now only a 35% probability of a rate hike at the Fed's September meeting, down from 52.2% just a week earlier.

The euro has reached $1.1571 after touching a two-month high of $1.1614 on Monday, while sterling stands at $1.3534, near its three-month peak.

The dollar index remains at 99.66, with the escalating geopolitical concerns triggered some safe-haven demand for the US currency.