The U.S. dollar traded near a two-month low on Monday as investors looked to upcoming inflation data for clearer signals on the Federal Reserve’s next rate decision. The euro rose to $1.1558 near its strongest level since mid-June, sterling held at $1.3490 near a five-week peak, and the yen stayed at 157.90 per dollar, still well above the roughly 164 multi-decade low reached late last month. The dollar index was little changed at 99.6, close to its weakest reading since June 2. Markets shifted after Friday’s U.S. labor report showed the economy unexpectedly lost jobs in July and payroll gains for the prior two months were revised sharply lower, prompting investors to scale back the chance of a September Fed rate increase to around 44% from 67% a week earlier. Benchmark 10-year Treasury yields fell to 4.637%. Investors are now focused on core CPI, which is expected to rise 0.2% month on month in July, lifting the annual rate to 2.5% from 2.6% in June. Producer prices and retail sales due later this week are also expected to shape the inflation outlook. Oil prices added another variable, with Brent crude up 1.4% at roughly $85 per barrel as uncertainty persisted over the reopening of the Strait of Hormuz. In Asia, the New Zealand and Australian dollars each slipped 0.1%, while traders awaited the Reserve Bank of Australia’s rate decision on Tuesday, where the key rate is expected to remain at 4.35% for the rest of the year.