US dollar up as more signals awaited about direction of US interest rates

The US dollar rose today, Tuesday, as traders awaited an important report on US retail sales and statements from the Federal Reserve, searching for clear signals about the timing and pace of reducing interest rates.

The dollar index, which measures the performance of the US currency against a basket of six major currencies, rose 0.11% to reach 105.39 during the trading session in Asia.

The dollar index lost 0.2% yesterday, Monday, after falling from its highest level in a month and a half, which it recorded on Friday at 105.80.

The dollar swung in both directions as moderate US inflation readings contradicted the general position of US Federal Reserve officials, which tends to tighten monetary policy at last week’s meeting, when they reduced their previous average expectations for interest rate cuts from three cuts this year to one.