WASHINGTON (dpa-AFX) - The U.S. dollar pared early gains and drifted lower against major rivals on Tuesday as demand for the safe-haven currency dropped a bit after U.S. stocks climbed higher.
Investors await U.S. inflation data due on Friday to assess the Fed's policy tightening path going forward.
The Fed is widely expected to raise interest rate by half-point at its meetings due this month and next.
A report from the Commerce Department showed the U.S. trade deficit narrowed significantly in the month of April.
The report said the trade deficit narrowed to $87.1 billion in April from $107.7 billion in March. Economists had expected the deficit to shrink to $89.5 billion from the $109.8 billion originally reported for the previous month.
The dollar index, which advanced to 102.84 in early New York session, dropped to 102.26 later on in the day before recovering slightly to 102.33. The index had settled at 102.44 on Monday.
Against the Euro, the dollar is trading at $1.0706, weakening from $1.0693.
The dollar is trading at $1.2591 against Pound Sterling, losing from $1.2533. Against the Japanese currency, the dollar is stronger by nearly 0.6%, fetching 132.64 yen a unit, up from 131.89 yen on Monday.
Against the Aussie, the dollar weakened to 0.7232 from 0.7195 following a surprise 50-basis points interest rate hike by the Reserve Bank of Australia.
The Swiss franc is weaker at 0.9724 against the dollar. The Loonie has firmed to 1.2534 against the dollar thanks to a sharp surge in crude oil prices.
Copyright(c) 2022 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2022 AFX News
