The dollar fluctuates for at least 15 months, the euro for a maximum of 17 months

(Extended version of the text, updated citations)

SINGAPORE, July 18 (Reuters) – The dollar weakened slightly on Tuesday to trade near more than a year’s low against major rival currencies as investors wait for a new impetus that could perpetuate the dollar’s decline – the US currency fell sharply last week after inflation statistics were released in the US, which turned out to be colder than forecast.

The dollar index against a basket of six major currencies fell 0.29% to 99.615 at 10:15am ET, staying close to Friday’s low of 99.574, the lowest level since April 2022.

Last week was the worst for the index this year, after the release of CPI data:

consumer prices

in the US in June it grew at the slowest rate in more than two years, which eased the pressure on the Federal Reserve to keep raising interest rates.

“I think the dollar may be under selling pressure,” said Carol Kong of the Commonwealth Bank of Australia. “Markets Focus on Ending Fed Tightening Cycle.”

The euro rose 0.33% to $1.1271, hitting a 17-month high.

The pound was up 0.21% to $1.3098, staying close to last week’s high of $1.3144, its April 2022 high.

The Swiss franc rose 0.4% to $0.8571.

Money markets assume a 25 basis point Fed rate hike in July followed by a rate cut in December.

On the contrary, investors expect further tightening of monetary policy from the European Central Bank and the Bank of England.

The Japanese yen rose 0.33% against the dollar to 138.25. The BOJ meeting will give markets an indication of whether the central bank will begin to phase out ultra-soft policy.

“More market participants are predicting that the Bank of Japan will extend the allowable range of the yield curve (bonds) by 25 bp at the next meeting,” said Ryota Abe of SMBC.

The Australian gained 0.21% to $0.6829 after minutes from the Australian Central Bank meeting published on Tuesday did not bring any major surprises in terms of monetary policy.

The New Zealand dollar was sluggish at $0.6321.

Yuan

on the continental market it was stable near the level of 7.1715​, on the offshore market it was inactive near 7.1773.

Bitcoin fell 0.41% to $30,030, Ethereum down 0.49% to $1,902.1.

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