BlockBeats News, August 14th, the US Dollar Index (DXY) once fell to its lowest level since May as US retail sales data unexpectedly weakened, prompting traders to further scale back their expectations of a rate hike this year. Following the release of this economic data, bond market traders retreated their bets on the Fed raising borrowing costs in 2026.

This dovish narrative has been supporting the dollar for the past few months. This decline puts the dollar on track for its sixth weekly decline in the past seven weeks. The unexpectedly weak labor market report released last Friday, coupled with this week's mild inflation data, have collectively contributed to the recent downturn. (FXStreet)