Continued pressure fell on US dollar trading until the last session last week when it was affected by the data of the PCE price index of the United States (US) published.
Measuring personal consumer spending in the US which is also one of the inflation component indicators for the central bank, the reading for August rose more slowly to 0.1% compared to July at 0.2%.
The core reading also rose to 0.1%, missing forecasts to remain at 0.2% as in the previous month.
The US dollar clearly weakened at the start of the New York session last Friday when it reacted to the data being published, but slowly recovered towards the end of the session to close out the week's trading.
If the latest US economic data continues to show gloomy figures, the US dollar will experience a fall in value as expected by analysts, following the Federal Reserve's (Fed) aggressive interest rate cuts at its latest meeting.
The focus this week will be on the US NFP jobs report at the end of the week which will influence the Fed's decision on their further monetary policy setting.
The US dollar continues to weaken against most major currencies, most notably against the Yen.
This follows the Yen which began to show significant strengthening at the end of last week following the news of Shigeru Ishiba's victory in the election of the leader of the Liberal Democratic Party (LDP) who will appoint him as the new Prime Minister of Japan.
Ishiba's victory adds confidence to Japan's more stable monetary policy while supporting the strengthening of the Yen in the market.
