The US dollar gained and the Japanese yen weakened 0.75 per cent to 158.97 per dollar on Monday as traders reassessed the odds of a Federal Reserve rate hike at its September meeting, Reuters reports. Fed funds futures traders are pricing in 48 per cent odds of a hike, down from 55 per cent after Friday's weaker-than-expected jobs report, which also saw significant downward revisions.

Wednesday's consumer price index data for July could shift expectations if it shows a reacceleration in inflation, analysts said. The dollar index rose 0.15 per cent to 99.76 against a basket of currencies including the yen and euro. Speculators slashed their bearish bets on the yen by the most in over 12 years, according to Commodity Futures Trading Commission data, reflecting intervention by Japanese and US authorities to strengthen the currency, Channel NewsAsia business reports.