The dollar fell against most of its major peers after weak US economic data reduced bets on a Federal Reserve interest-rate hike next month.
A Bloomberg gauge of the dollar slipped 0.1%, heading for a third day of losses and hovering near levels last seen in May. MSCI’s emerging-market currency index rose to an intraday record, with the Taiwan dollar and Thai baht among the region’s biggest gainers.
Meanwhile, the Bloomberg Asia Dollar Index climbed to the strongest level since May. Pressure on the dollar increased after US government data on Friday showed retail sales fell in July by the most in more than a year as consumers pulled back on purchases.
Swaps traders see less than a 30% chance the Fed will raise rates next month. That’s down from about 50% odds only a week ago. Treasuries rose across the curve, with the yield on the rate-sensitive two-year note falling two basis points to 4.15%.
Yields on the 10-year and the 30-year bonds both declined by one basis point. Elsewhere, Brent gained 0.2% to about $88.65 a barrel as renewed Israeli attacks on Lebanon and the prospect of fresh US sanctions on Iran added to geopolitical uncertainty.
