LONDON/SINGAPORE, June 13 (Reuters) – The Dollar fell slightly on Tuesday as investors awaited U.S. inflation data, while China’s yuan slipped to a six-month low after the central bank lowered a short-term lending rate to boost the economy.
The euro was up 0.37% to $1.079 on Tuesday, after touching its highest since May 23 earlier in the session at $1.081.
That helped push the dollar index , which measures the currency against six peers, down 0.26% to 103.32.
U.S. consumer price inflation (CPI) data is due out at 1230 GMT (8:30 a.m. ET) and could influence the Federal Reserve as it starts its two-day policy meeting, with an interest rate decision due on Wednesday.
The dollar was down in part because the market was “priced for a pause” from the Fed tomorrow, said Jane Foley, head of FX strategy at Rabobank.
The Fed lifted its target rate range to 5% to 5.25% in May, but traders think there is a 77% chance the Fed will hold it steady this week. Traders broadly expect another 25 bp hike in July, after Fed officials hinted at a so-called skip.
“What’s going to be interesting today is looking at that CPI, especially the core number, because there will be a bit of fine tuning (of market expectations) ahead of the Fed’s meeting,” Foley said.
In Asia, China’s yuan fell to a six-month low after the central bank lowered a short-term lending rate for the first time in 10 months, in a bid to restore market confidence and prop up its stalling post-pandemic recovery.
The onshore yuan bottomed at 7.168 per dollar, its lowest since last November, and last traded at 7.152.
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Source: www.reuters.com
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