© Reuters.

By Gina Lee

Investing.com – The dollar was down on Tuesday morning in Asia, remaining a little below 2021’s peaks hit on Tuesday. Cryptocurrencies scaled records, while inflation numbers loom as the next test of traders’ thinking on the outlook for interest rates.

The that tracks the greenback against a basket of other currencies edged down 0.11% to 93.942 by 11:59 PM ET (4:59 AM GMT).

The pair went down 0.35% to 112.82.

The pair edged down 0.13% to 0.7410 and the pair inched down 0.07% to 0.7160. The greenback dropped against the New Zealand dollar overnight as traders stay wary of the possibility that the Reserve Bank of New Zealand (RBNZ) could raise rates by 50 basis points (bps) later in the month.

“If the RBNZ is of a mind to hike by 50bps, now’s the time,” ANZ analysts said in a note.

“That still seems incongruous with the uncertain global backdrop and cautious tone of other central banks. Still, until we know the outcome, markets will price in the risk.”

The pair inched up 0.09% to 6.3960. Inflation data, including and price data indexes from both China and the U.S., is due on Wednesday. The data could also test central bankers’ view that inflation is temporary.

The pair inched up 0.05% to 1.3567.

Ahead of the data, a group of central bankers, including European Central Bank President Christine Lagarde and U.S. Federal Reserve Chairman Jerome Powell, will speak on Tuesday.

The gave markets a surprise last week when it kept its interest rates unchanged at 0.10%. The and the also did not hike interest rates despite aggressive market predictions.

Standard Chartered (OTC:) analysts expect a hike in the third quarter of 2022, but a slow path higher thereafter. “We suspect that the discussion of rate hikes will subside for a while. Central banks that give forward guidance discourage investors from pricing policy moves too far in advance,” strategists Steve Englander and John Davies said in a note.

“So we expect Fed officials to keep repeating that rate hikes are not imminent until a move is only a few months away,” the note added.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link