The dollar weakened on Monday even as markets raised expectations for a Federal Reserve rate increase this month, with Middle East tensions fueling concern that broader inflation could prompt central banks to tighten policy together. The greenback was also pressured by stronger sentiment toward the yen, rising U.S. debt and policy uncertainty. The dollar index fell 0.07% to 99.09, while the euro rose marginally to $1.1618 and sterling was little changed at $1.3519. Markets priced a roughly 57% chance of a Federal Reserve hike in September after a stronger-than-expected U.S. jobs report, leaving Friday’s inflation data as the next major policy signal. A hotter consumer-price reading could reinforce hike expectations, while a cooler result could support a pause and weigh on the dollar, BBH global head of markets strategy Elias Haddad said. The yen rose more than 0.2% to 155.88 per dollar after an economic adviser to Japanese Prime Minister Sanae Takaichi projected a Bank of Japan increase this month. Markets priced a 75% chance of a quarter-point BOJ hike on September 18 and a 60% chance of another move by December. Bitcoin held above $80,000 at $80,145.95 as investors recently diversified away from the dollar.