Dollar declines, investors await U.S. inflation data
The dollar dropped on Tuesday morning in Asia. Investors now anticipate the latest United States inflation data for hints on the start of the Federal Reserve’s asset tapering.
The U.S. Dollar Index that measures the greenback against other major currencies declined 0.06% to 92.597 by 10:21 PM ET (2:21 AM GMT).
The USD/JPY pair gained 0.10% to 110.08.
The AUD/USD pair was down 0.05% to 0.7362, and the NZD/USD pair shed 0.10% to 0.7114.
The USD/CNY pair slid 0.02% to 6.4495, while the GBP/USD pair nudged 0.08% higher to 1.3847.
Investors keep a close eye on the consumer price index that will be released today.
Daiwa Securities senior strategist Yukio Ishizuki said inflation stays at a very abnormal level, with the core CPI still above 4%.
Meanwhile, investors expect the Fed’s official announcement of its asset taper commencing in November when it delivers its latest policy decision next week.