Investing.com - The dollar was struggling near 10-month lows against the other major currencies on Monday amid lingering doubts over the Federal Reserve’s plans to raise interest rates for a third time this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 94.95 by 11.10 a.m. ET (03.11 p.m. GMT).
The index touched a 10-month low of 94.86 overnight after falling 0.69% on Friday.
The dollar remained on the back foot after Friday’s weak U.S. inflation and retail sales data added to doubts over the Fed’s plans for another rate hike this year.
The Fed hiked rates at its June meeting and stuck to its forecast for one more rate hike this year but the sluggish inflation outlook has raised questions over whether officials will be able to stick to their planned tightening path.
Poor manufacturing figures from New York on Monday underlined expectations that the Fed will hold off on raising rates for longer.
The Empire State manufacturing index dropped from 19.8 to 9.8 in July, missing expectations for a more modest decline to 15.
The dollar pushed higher against the yen, with USD/JPY rising 0.22% to 112.79 after falling to a two-week low of 112.31 overnight.
The euro was little changed against the dollar, with EUR/USD at 1.1475, within striking distance of the 14-month high of 1.1488 set last Wednesday.
The pound rallied 1.2% against the dollar on Friday, its largest one-day percentage gain in three months to a high of 1.3093.
The Canadian dollar was steady near 14-month peaks with USD/CAD at 1.2646 as higher interest rates continued to underpin demand for the loonie, offsetting data showing a large decline in home sales last month.
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