On Monday, August 17, the US dollar fell to its lowest level in two months.
The US Dollar Index fell 0.3% to 99.33. This level was last recorded on June 5, 2026. The decline occurred against the backdrop of weaker-than-expected economic data. For example, in July, non-farm payrolls declined, retail sales fell by 0.6%, and the Consumer Price Index and Producer Price Index remained flat or met forecasts.
This combination of data has removed the basis for the US Federal Reserve to raise interest rates in the near term. Analysts are now 70% confident that the Fed will keep rates unchanged at its September meeting. Before the August 7th employment report, the probability of a rate hike exceeded 50%. In July, the US financial regulator kept rates in the 3.50–3.75% range for the fifth consecutive time.
While the US Dollar Index is falling, the euro has reached a two-month high of $1.1614, and the British pound a three-month high of $1.3571. The Japanese yen traded around $159.00, despite weak Japanese GDP data. Earlier, the Happy Coin News editorial reported Arthur Hayes' opinion that the strengthening of the Japanese currency could fuel a Bitcoin rally.
end-content
