The dollar weakened against the euro and Swiss franc, set for a 2% decline in August as traders anticipate a U.S. interest rate cut. U.S. inflation data initially led to a dollar firming, but it later gave up gains, continuing a three-day losing streak.

U.S. Commerce Department reported a 0.2% rise in PCE Price Index last month, keeping the Fed on track for a rate cut at the upcoming meeting. Dollar index down 0.09% at 97.803. Money markets show an 87% chance of easing.

Market instability continues amid Trump’s attempt to influence monetary policy and remove Fed Governor Lisa Cook. A federal judge sets an expedited briefing schedule in Cook’s bid to block Trump from firing her. Trump aims to reshape the Fed after criticizing Powell for not cutting rates.

Eurozone consumers maintain inflation expectations above ECB’s 2% target. French consumer prices rose slightly lower than expected in August. The euro up 0.11% at $1.1696, sterling flat at $1.3502. Dollar edged up against yen but lower on the month. Dollar weakened against Swiss franc, New Zealand dollar slightly stronger after RBNZ Chairman’s resignation. China’s yuan strengthens, Indian rupee hits record low.

Read more at Yahoo Finance: Dollar trades lower with Fed cut in view, on course for monthly drop