US dollar falls 0.3% as markets await inflation report
The US dollar slipped on Monday after a recent high, thanks to easing concerns about AI investments and Middle East tensions.
The dollar index dropped 0.3% to 101.87, shifting everyone's focus to the upcoming US inflation report, which could shape the Federal Reserve's next move on interest rates.
Euro and riskier currencies gain
With the dollar down, the euro and riskier currencies like Australia's and New Zealand's got a lift.
All eyes are now on new US inflation data, expected to rise by 0.3%. If that happens, there's an 81% chance the Federal Reserve will hike rates in December, according to futures markets.
Earlier gains for the dollar were partly due to falling oil prices after Donald Trump suggested less risk of strikes on Iran, showing how global headlines keep shaking up currency values.