Dollar climbs from two-month trough as oil gains, inflation data eyed

The futures market has scaled back the chance of a September move to around 44% from 67% a week ago. U.S. Treasury yields also held onto their declines after the jobs report dashed hike bets, with those on benchmark U.S. 10-year notes last at 4.637%.

A consensus estimate calls for the core CPI to rise 0.2% month-on-month in July, lifting the annual rate to 2.5% and extending a gradual moderation in inflation. The annual rate was 2.6% in June.

Producer price data on Thursday and retail sales figures on Friday will further inform the outlook for inflation.

"Although there's a lot of inflation dynamics, the Fed will for now stay on the sidelines and wait to see how things play out," Rodrigo Catril, senior FX strategist at NAB, said in a podcast.

In Asia, the New Zealand dollar and Australian dollar each slipped 0.1% to $0.7062 and $0.5887 respectively.