US Dollar Hovers Near Two-Month Low Ahead of Inflation Data

The U.S. dollar hovered near a two-month low against major currencies on Monday, August 10, 2026. The dollar index, which measures the greenback against six major peers, held near 99.6, marking its weakest level since June 2. Currency traders maintained cautious positions while awaiting critical U.S. inflation figures for directional guidance.

Recent employment figures showed the U.S. economy unexpectedly shed jobs in July alongside sharp downward revisions for prior months. This labor market softening lowered market expectations for a Federal Reserve rate hike in September. Futures markets reduced the probability of a September policy move to approximately 44% from 67% the previous week, pushing benchmark 10-year Treasury yields down to 4.637%.

Economists expect the core Consumer Price Index to rise 0.2% month-on-month in July, setting the annual rate at 2.5%. Upcoming producer price data and retail sales reports will further clarify the macroeconomic outlook. Analysts suggest the dollar index could slide toward 96.50 if upcoming inflation metrics confirm a cooling economic pace.