The US dollar stood little altered on its small improvement from the last day bogging down as investors began to take a waitandsee approach ahead of Friday’s US jobs report.
The US dollar hit a two-month high against a basket of essential monies last week as Federal Reserve officials talked up the odds of a rate rise this month, but the greenback is currently sitting in a narrow range using a raise seen largely as a done deal.
“The dollar’s upside seems restricted as the marketplace has nearly completely priced in a March rate rise, with focus now changing to how many times the Fed can stiffen policy this year,” said Junichi Ishikawa, senior forex strategist at IG Securities in Tokyo.
“With attention on whether the Fed can run three increases this year, Friday’s jobs data will provide important clues regarding whether an inflation-causing wage increase is occurring.”
The US dollar was virtually level at 113.925 yen after rising modestly to 114.160 overnight.
The euro was almost unchanged at US$1.0569 after falling about 0.1 per cent the previous day.
The US dollar index, which reach a two-month peak of 102.260 last Thursday, was steady at 101.820. It increased about 0.15 per cent overnight, when the US dollar was buoyed by decrease in its European peers.
The british pound fell to a seven-week trough on Tuesday after poor consumer spending data added to stresses that Britain’s market is slowing as it prepares to activate its departure from the European Union. Sterling stood flat at US$1.2202 after dipping 0.3 per cent overnight.
The Swiss franc also pulled away to multi-week lows, damage by a rise in the Swiss National Bank’s foreign exchange reserves and statements from SNB Chairman Thomas Jordan that the franc was “significantly overvalued”.
The Australian dollar rose 0.1 per cent to US$0.7592. The Aussie had spiked to US$0.7633 the preceding day after the Reserve Bank of Australia kept interest rates on hold and gave an upbeat appraisal of the market, suggesting that it doesn’t mean to ease policy this year.