Investing.com - The dollar edged higher against a basket of
major currencies on Tuesday as investors awaited congressional
testimony by Federal Reserve Chair Janet Yellen later in the
Traders were awaiting fresh indications on the future direction
of monetary policy after last week's minutes of the Fed's June
meeting revealed little new information on when rates could start
USD/JPY inched up to session highs of 101.65 from 101.52 late
Monday, while USD/CHF was up 0.13% to 0.8929.
The yen showed little reaction after the Bank of Japan left its
monetary policy target unchanged at the end of its two-day policy
meeting on Tuesday and slightly pared back its forecast from growth
in this fiscal year.
EUR/USD was down 0.16% to 1.3596 after data showed that German
economic sentiment deteriorated unexpectedly in July, hitting the
lowest level since December 2012.
The ZEW index of German economic sentiment fell to 27.1 this
month from 29.8 in June. Analysts had expected the index to tick
down to 28.0.
The pound surged to session highs after data showed that the
annual rate of inflation in the U.K. accelerated more quickly than
expected in June. Consumer prices rose 1.9% on a year-over-year
basis last month, accelerating from 1.5% in May and well above
expectations of 1.6%.
The retail price index, a broader measure of the cost of living,
rose to 2.6% in June from 2.4% in May.
GBP/USD climbed 0.33% to 1.7140 from around 1.7080 before the
release of the data.
The New Zealand dollar was hovering within striking distance of
three year highs, with NZD/USD at 0.8797, while AUD/USD was down
0.27% to 0.9367.
The Canadian dollar was at almost three-week lows, with USD/CAD
at 1.0736. The loonie, as the Canadian dollar is also known,
remained under pressure after unexpectedly weak domestic employment
data last week indicated that the country's central bank will stick
to its dovish stance on rates.
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, eased
0.10% to 80.29.
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