US Dollar sell off continues amid interest rate cut bets

The week began with a sharp sell-off in the US Dollar, following a slew of economic data last week that raised the prospect of a U.S. economic downturn and larger interest rate cuts from the Federal Reserve.

The dollar index, which measures the U.S. currency against a basket of six others, was down 0.46% to 102.68 after hitting a low of 102.15, its lowest level since mid January.

Against the yen, the dollar fell 2.04% to 143.5, nearing its weakest level of the year. The euro rose 0.37% to $1.095, after reaching $1.1009, its strongest since January 2.

Weaker-than-expected U.S. jobs data, disappointing earnings reports from major technology firms, and growing concerns about the Chinese economy have triggered a global sell-off in stocks, oil, and high-yielding currencies over the past week, as investors sought the safety of cash.

The sell-off continued on Monday, with U.S. Treasury yields declining further and stock indexes remaining in the red.

On Monday, Fed fund futures indicated that traders were nearly certain of a 50 basis point cut at the central bank's September meeting, as per CME FedWatch. The Dollar gained some ground against the British pound as the sharp decline in global investor risk sentiment led to reduced demand for riskier currencies.

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