Dollar firms ahead of inflation data, Fed meeting in focus ‎

The dollar stabilized today, Tuesday, before the release of US inflation data and the Federal Reserve (US Central Bank) held its last meeting for this year, which investors are looking forward to updating their interest rate expectations.

According to Reuters, a month ago, expectations that inflation had peaked unleashed a wave of bond buying and dollar selling. US inflation data, due at 1330 GMT, will test this assumption

The dollar rose 0.8 percent against the yen on Monday, and settled at 137.70 yen during the Asian session on Tuesday. It also maintained its gains against the Australian dollar at $0.6759

In a Reuters poll, economists expected the core inflation rate for November to stabilize at 0.3 percent on a monthly basis, with a moderate rise on an annual basis, as it rose 7.3 percent from a year ago.

The dollar index settled at 105.01 on Tuesday, down from a 20-year high of 114.78 in late September.

The euro also settled at 1.0539 dollars, as well as the pound sterling at 1.2268 dollars. The Swiss franc recorded 0.9360 per dollar, with traders anticipating meetings to be held on Thursday by the European Central Bank, the Bank of England and the Swiss National Bank.

Later on Tuesday, British employment data is due, as well as opinion polls on German business conditions and sentiment.

The New Zealand dollar settled at $0.6386. The Chinese yuan fell slightly on Monday as enthusiasm about lifting anti-Corona restrictions in China began to fade, although Hong Kong eased some restrictions.