Ammon News - The dollar hit a five-week low on Monday as investors looked ahead to a raft of U.S. labour market data this week that could affect expectations for the Federal Reserve's monetary easing path.

Traders were also assessing Friday's U.S. inflation figures and a court ruling that most of Donald Trump's tariffs are illegal, as well as the U.S. president's ongoing tussle with the Fed over his attempt to fire Governor Lisa Cook.

Money markets have recently priced an around 90% chance of a 25 basis-point Fed rate cut in September and around 100 bps of easing by autumn 2026, according to the CME FedWatch tool.

The euro was up 0.32% at $1.1719, while sterling edged 0.16% higher to $1.3525. U.S. markets are closed for a holiday on Monday.

The dollar was roughly unchanged at 147.00 against the yen after a monthly decline of 2.5% in August.

Reuters