© Reuters.

By Gina Lee

Investing.com – The dollar was down on Monday morning in Asia, remaining below an almost 16-month high. Investors now await the next clues on the status of the U.S. economic recovery from COVID-19 after the brought forward bets for a U.S. Federal Reserve interest rate hike during the previous week as inflation continues to skyrocket.

The that tracks the greenback against a basket of other currencies edged down 0.13% to 95.007 by 23:32 PM ET (4:32 AM GMT).

The pair inched up 0.01% to 113.86, after Japan’s third-quarter GDP contracting by a larger-than-expected 3% and 0.8% .

The pair edged up 0.16% to 0.7344, with the releasing the minutes from its November meeting on Tuesday. The pair inched up 0.03% to 0.7049.

The pair inched up 0.05% to 6.3819. Chinese data released earlier in the day showed that grew 6.1% year-on-year, grew 3.5% year-on-year and grew 4.9% year-on-year in October. The remained unchanged at 4.9%.

Chinese President Xi Jinping will also reportedly hold a virtual summit with U.S. counterpart Joe Biden.

The pair edged up 0.11% to 1.3428.

U.S. data released during the previous week showed that the consumer price index grew at its fastest annual pace since 1990, giving the dollar boost. Investors are now doubting the Fed’s insistence that inflationary pressures will be temporary, pricing the first rate increase by July 2022 and a high likelihood of another by November 2022 as of the end of last week.

Investors now await U.S. , which will be released on Tuesday. “It will be important to watch what still cashed-up U.S. consumers do rather than what they say,” considering readings of sentiment were at odds with actual spending during the summer, National Australia Bank (OTC:) head of FX strategy Ray Attrill said in a note.

The dollar index, which is heavily euro-weighted, has also been boosted by the euro’s drop as the European Central Bank (ECB) will not likely change its current dovish tone. The euro was little changed at $1.14455, remaining near Friday’s 16-month low of $1.1433. ECB president Christine Lagarde will also speak before the Committee on Economic and Monetary Affairs of the European Parliament later in the day.

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