The US Dollar Index falls to a two-month low amid softer US jobs, inflation, and retail sales data reducing Fed tightening expectations.
The US Dollar Index (DXY) dropped to its lowest level in two months, trading below the 100.00 mark as investors scaled back expectations for a Federal Reserve rate hike. Recent US economic data, including weaker-than-expected jobs, inflation, and retail sales figures for August, have dampened bets on further monetary tightening.
Prior to this decline, the DXY had shown resilience but struggled to maintain momentum as softer prints reinforced concerns over economic growth. The index’s retreat reflects shifting market sentiment, with traders now pricing in a lower probability of aggressive Fed action in the near term.
Safe-haven assets like gold and oil gained traction amid geopolitical tensions in the Middle East, further pressuring the dollar. The greenback’s weakness may persist if upcoming data continues to underwhelm.