Dollar weakens anew as inflation numbers loom

The dollar extended its loss on Tuesday morning in Asia, trading below its 2021 peak touched last week. Investors await inflation figures for hints of the United States’ Federal Reserve’s inflation rate moves.

The U.S. Dollar Index that measures the greenback against other major currencies dropped 0.11% to 93.942 by 11:59 PM ET (4:59 AM GMT).

The USD/JPY pair nudged 0.35% lower to 112.82.

The AUD/USD pair slid 0.13% to 0.7410, while the NZD/USD pair inched down 0.07% to 0.7160. 

The USD/CNY pair climbed 0.09% to 6.3960, while the GBP/USD pair jumped 0.05% to 1.3567.

Steve Englander and John Davies, Standard Chartered analysts, said interest rate hikes from the Reserve Bank of Australia and the Fed are expected in the third quarter next year. However, further increases would be slow.

Englander and Davies added that the Fed would likely reiterate in the coming months that the move was not imminent, dimming investors’ expectations.