Forex- Dollar Rallies From Three-Year Low as Euro Falls

© Reuters. The dollar inched forward on Tuesday.

Investing.com – The dollar rose against a basket of the other major currencies on Tuesday as the euro eased from a three-year high as investors expect the European Central Bank to pare back its monetary stimulus this year.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, inched up 0.28% to 90.38 by 11:19 AM ET (16:19 GMT). The index was at a three-year low of 90.05 on Monday.

was down 0.25% to 1.2235, falling from Monday’s highs of 1.2296, which was the strongest level since December 2014.

The single currency came under pressure after Reuters reported that the to keep buying bonds at its upcoming meeting next week.

The dollar has weakened broadly recently amid the view that the global economic recovery will outpace U.S. growth and prompt other major central banks, led by the ECB, to begin unwinding loose monetary policy at a faster pace than has been expected.

The dollar edged higher against the yen, with rising 0.22% to 110.77, up from the four-month low of 110.32 on Monday.

Sterling fell after data showed UK inflation slowed in December for the first time in six months. decreased 0.14% to 1.3773, off Monday’s peaks of 1.3819, the highest since Britain’s vote to exit the European Union in June 2016.

The slowed to an annual rate of 3.0% last month, down from November’s six-year high of 3.1% and the first decline since June.

Elsewhere, slipped 0.14% to 0.7954 while lost 0.41% to trade at 0.7270.

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