Dollar Weakness Spreads as Global Yields Rise

The US Dollar Index (DXY) slipped below 99.50, down 0.26%, after failing to breach its 200-day EMA despite a surge in oil prices and higher yields across the curve.

The odds of a September Federal Reserve increase rose to around 60% from 35% before Friday's Jackson Hole speech, but this move was largely driven by global factors, with euro-area and Japanese borrowing costs reaching their highest levels in years.

The euro and yen, which make up over 72% of the DXY basket, are expected to benefit from the hawkish policy outlook, particularly in light of the European Central Bank's upcoming meeting on September 9-10 and the Bank of Japan's decision on September 18.