Dollar Down, Moves Remain Small Ahead of U.S. Inflation Data By

Dollar Down, Moves Remain Small Ahead of U.S. Inflation Data By

© Reuters.

By Gina Lee – The dollar was down on Tuesday morning in Asia, as investors await U.S. inflation data that could provide a clue to the U.S. Federal Reserve’s timetable for asset tapering.

The that tracks the greenback against a basket of other currencies inched down 0.06% to 92.597 by 10:21 PM ET (2:21 AM GMT), after retreating from a two-week high of 92.887 hit earlier on Monday.

The pair inched up 0.10% to 110.08.

The pair inched down 0.05% to 0.7362 and the pair inched down 0.10% to 0.7114.

The pair inched down 0.02% to 6.4495 and the pair inched up 0.08% to 1.3847.

The U.S. will release data later in the day, which will be closely watched by investors.

“With the core CPI still seen above 4%, inflation is at a very abnormal level. Powell has been saying inflation will be transient since March but the Fed will probably have to adjust its wording in the next policy statement,” Daiwa Securities senior strategist Yukio Ishizuki told Reuters.

Investors also await the , due to be handed down next week, where the central bank is expected to agree to begin asset tapering in November.

“Asset tapering in 2021 is a done deal. The next question will be whether the Fed will raise interest rates in 2021. Given persistent inflation, the Fed may not be able to afford to be relaxed about it for too long,” said Ishizuki.

Although global shares remain near record highs, increasing investors’ risk appetites, some investors warned of risks up ahead.

“Global risk appetite is edging toward a more tenuous and twitchier phase. A discordant G2 is increasingly the problem,” Deutsche Bank (DE:) macro strategist Alan Ruskin told Reuters.

“The U.S.-China trade dispute has not found any resolution. On the contrary, market forces are dominating quantity targets, and widening bilateral balances will again prove a source of tension,” he added.

Another development in China on investors’ radars is China Evergrande Group’s (HK:) . The cash-strapped property developer is struggling to calm solvency concerns while the country’s tech firms deal with the latest round of regulatory tightening.

In cryptocurrencies, bitcoin fell to as low as $43,400, the lowest level in almost a week and last traded at $44,973. Ether also fell to $3,283.

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