Dollar Dips Amid Key U.S. Jobs Data Anticipation

The dollar saw a slight dip on Monday, as investors braced for a slew of U.S. labor market data expected this week, which could significantly impact the size of a projected rate cut by the Federal Reserve. Observers are also digesting U.S. inflation figures alongside a court ruling that found a majority of President Trump's tariffs unlawful, adding to the existing tension surrounding Trump's clash with the Federal Reserve over the attempted dismissal of Governor Lisa Cook.

In Asian sessions, the dollar dropped 0.04% against the yen to 146.98, extending its 2.5% decline against the Japanese currency for August. The euro saw a 0.25% rise to $1.1710, with sterling inching up 0.14% to $1.3522. Notably, U.S. markets remained closed for a public holiday on Monday.

Friday's U.S. nonfarm payrolls report remains the focal point for investors, preceded by job openings and private payroll data. According to Carol Kong, a currency strategist at Commonwealth Bank of Australia, any unexpected weakness in these reports could heighten expectations for a rate cut, potentially swaying projections between a standard 25 basis-point cut or an enlarged 50 basis-point cut.

(With inputs from agencies.)