Forex-Dollar near two-month trough as US inflation data awaited

The euro edged higher to $1.1558, hovering near its strongest level since mid-June, while sterling was steady at $1.3490, near a five-week peak.

The yen held firm at 157.90 per dollar, having given back some intervention-driven gains but remaining well off the roughly 164 multi-decade low hit late last month.

Data on Friday showed the U.S. economy unexpectedly shed jobs in July and job gains for the prior two months were revised sharply lower, cooling expectations for a Fed rate hike next month.

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