The dollar edged higher on Tuesday, nearing a two-week high, as investors awaited key economic data, including Friday’s U.S. payrolls, which could impact the Federal Reserve’s upcoming interest rate decisions.
The euro fell 0.16% to $1.1055, while the British pound dropped 0.17% to $1.3124. Win Thin, global head of market strategy at Brown Brothers Harriman, noted that recent data indicates strong U.S. economic growth driven by robust consumption, despite gradual disinflation.
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The Fed’s preferred inflation measure, the PCE price index, rose 0.2% in July, in line with expectations, reinforcing expectations of gradual rate cuts. Market predictions suggest a total of 100 basis points in cuts this year.
Ten-year U.S. Treasury yields remained steady at 3.915%. The yen gained 0.3% to 146.50 per dollar, rebounding from a recent low. The Australian dollar fell 0.8% to $0.6737, and the New Zealand dollar slipped 0.75% to $0.61875, ahead of key economic data releases.
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