US Dollar weakens as rate hike prospect fades

The US dollar slipped during Monday’s trading, touching its lowest level since June 3, as expectations for a Federal Reserve rate hike at its upcoming September meeting receded following a string of weaker-than-expected economic data.

The US Dollar Index, which measures the greenback against a basket of six major currencies, fell 0.16% to 99.5 points at 6:04 pm Makkah time.

According to the CME FedWatch Tool, the probability of a Fed rate hike in September fell to 30.6%, down from 33.1% a day prior and 52.2% a week ago, with markets leaning heavily toward a rate hold.

The decline came as investors await S&P Global’s manufacturing and services PMI readings due later this week, following soft employment, inflation, and retail sales data in recent weeks.