US Dollar Heads for Second Straight Monthly Decline as Yen Nears 160

The dollar spot index fell 0.2% to 1195.91 on Monday, erasing most of Friday's gains and weakening broadly against G10 currencies. According to Sina Finance, the dollar is now expected to fall 0.9% in August and is heading for a second straight monthly decline. The yen continued to fluctuate near the closely watched 160 level, while USD/JPY fell 0.3% to 159.69 after briefly dropping below 160. The U.S. 10-year Treasury yield rose above 4.75% on Monday for the first time since January 2025, as higher oil prices boosted expectations for Federal Reserve rate increases. USD/CAD fell 0.4% to 1.3855, also erasing most of Friday's gains. EUR/USD rose 0.3% to 1.1616, and GBP/USD gained 0.1% to 1.3551. Japan's industrial output rose for a fourth consecutive month despite the adverse impact of the Middle East conflict, indicating manufacturing resilience.