Dollar near two-month low ahead of US inflation data

The US dollar hovered near its two-month low against major currencies on Monday, as investors awaited inflation data this week in search of clues about the Federal Reserve’s interest rate trajectory.

The euro rose slightly to $1.1558, hovering near its strongest level since mid-June, while the British pound stabilized at $1.3490, close to its highest point in five weeks.

The yen held steady at 157.90 against the dollar, after giving up some gains achieved following intervention, but remained far from its multi-decade low of around 164 per dollar recorded in late last month.

The US Dollar Index, which measures the performance of the US currency against six major currencies, settled at 99.6, staying near its lowest level since June 2.