The US dollar declined to a two-week low following the release of July inflation data, which showed moderate increases in consumer prices. This data has reinforced market expectations for the Federal Reserve to implement interest rate cuts in September. The dollar fell more than $15 at one point, reaching lows not seen since April, as investors adjusted their positions in anticipation of sustained rate reductions. Concurrently, US bond yields dropped, contributing to the dollar's weakness. The softer dollar and growing bets on Fed rate cuts have also supported a rise in gold prices. The US Dollar Index fell to near 98.00 amid these developments, reflecting diminished traction for the currency as traders ramp up expectations for policy easing by the Federal Reserve.