U.S. Dollar Edges Higher After Recent Slump
The U.S. dollar remained slightly higher in Asia on Tuesday, but had given back some of their gains.
Investors pushed the euro back above the $1.33 mark and kept sterling well above the $1.9770 level. Late in New York, the euro stood at $1.3326, while the dollar opened at 115.35 yen in Tokyo on Tuesday.
"The market is waiting for something else to move it," said David Mozina, senior currency strategist at Lehman Brothers in New York. The euro "has rallied big time, so the market is just catching its breath," he added.
With little fresh U.S. data to trade off, investors instead braced for a slew of data set for release Tuesday in the U.S., as well as a series of European central bank rate decisions throughout the week.
On Monday, in an exclusive interview with cnbc.com, Chicago Fed President Michael Moskow said he expects U.S. economic growth to be below trend, but that the Fed can't let down its guard against inflation.
The ECB is expected to lift rates to 3.5 percent on Thursday. That expectation has boosted the euro to within 3 cents of its record high against the dollar and to a record peak versus the yen. Some predict the ECB will further tighten monetary policy in early 2007, though the recent surge in the euro has dampened this view.
The Bank of England also meets on Thursday, though one analyst said it will probably hold rates steady while sounding hawkish about future inflation risks. Sterling was off last week's 14-year high against the dollar, trading down 0.1% at $1.9777.