Dollar Recoups Losses as Markets Eye U.S. Inflation Data

The dollar regained some ground on Monday following last week's losses, amid investor anticipation of U.S. inflation data. Mixed job reports have led to uncertainty about the Federal Reserve’s upcoming rate decisions. Meanwhile, the yen weakened, and other major currencies experienced minor shifts.

The dollar regained some ground on Monday following a series of losses last week, as investors eagerly awaited U.S. inflation data that could impact the Federal Reserve's next rate decision.

The yen weakened against the dollar after four days of gains, dropping 0.7% to 143.35 per dollar. Meanwhile, the euro and the pound experienced minor declines, slipping 0.3% each.

Market attention is now focused on Wednesday's U.S. inflation report, expected to be the next significant indicator for the Fed's upcoming September meeting. The mixed jobs data released last Friday failed to provide a clear trajectory for whether the Fed would opt for a standard 25 basis point rate cut or a larger 50 basis point reduction.

(With inputs from agencies.)