Dollar hovers near two-week low

The dollar index hovered around 99.4 on Monday, near a two-week low, as investors positioned themselves for a crucial month that could see the Federal Reserve deliver its final rate cut of the year.

Weak economic data and dovish comments from several Fed officials have strengthened expectations of a rate reduction next week, with the implied probability at 87%.

The dollar logged its worst week in four months last week, following a sharp shift in expectations for Fed easing and reports that White House economic adviser Kevin Hassett has emerged as the leading candidate to succeed Jerome Powell as Fed chair.

The choice of Hassett is seen as aligned with President Donald Trump’s preference for lower interest rates.

On Sunday, Trump said he has decided on his pick for the next Fed chair and will announce it soon.

Investors are looking ahead to fresh US economic data this week, particularly ADP private payrolls and PCE figures, for more clues on the Fed's rate path.