Dollar Slips as Markets Await Inflation Data

The dollar index fell toward 98 on Monday, extending losses from last week as investors looked ahead to key inflation reports that could shape the outlook for interest rates. The consumer price index is due Tuesday, followed by the producer price index on Thursday. These releases precede the Federal Reserve’s Jackson Hole symposium in Wyoming on Aug. 21-23, expected to help shape the tone for the September policy meeting. Last week, the dollar weakened on growing bets the Fed will lower rates further this year amid signs of a softening labor market. Leadership changes at the Fed fueled concerns over political influence and a potential erosion of the central bank’s independence, while worries about the economic impact of President Donald Trump’s sweeping tariffs added further pressure. The greenback was little changed against most major currencies, while gained some ground versus the aussie ahead of an expected rate cut from the RBA this week.