Forex – Dollar Holds Steady, Yen Remains Supported

© Reuters. Dollar Holds Steady, Yen Remains Supported – The dollar remained steady against a currency basket on Tuesday, amid expectations that the Federal Reserve will continue hiking rates this year despite criticism from U.S. President Donald Trump about the impact of higher interest rates.

The , which measures the greenback’s strength against a basket of six major currencies, was at 94.39 by 05:29 AM ET (09:29 AM GMT), little changed for the day.

Demand for the dollar continued to be underpinned by expectations that the Fed will stick to plans for further gradual rate hikes this year as the economy continues to strengthen.

The dollar had come under pressure after on the U.S. central bank last week, claiming that their plans to raise U.S. interest rates risked undermining his efforts at strengthening the economy.

Trump also claimed that tighter monetary policy was penalizing the U.S. by contributing to a stronger dollar.

The dollar was slightly lower against the yen, with slipping 0.14% to 111.18.

The Japanese currency was supported by reports that the Bank of Japan is actively discussing changes to its massive monetary stimulus program. The BoJ is due to hold its next policy meeting at the end of the month.

The euro was almost unchanged against the dollar, with at 1.1690.

In the euro zone, data on Tuesday showed that this month, indicating that the region’s economy has started the third quarter on a softer footing.

The pound was a touch higher against the dollar, with edging up 0.11% to 1.3114.

Meanwhile, the fell to 13-month lows against the dollar as concerns over trade tensions continued to weigh.

The currency, which is usually closely controlled by Beijing, fell to in offshore trading.

The move lower has prompted speculation that Chinese policymakers are allowing their currency to weaken in order to offset the impact of U.S. trade tariffs, by making their exports more competitive.

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