US dollar drops ahead of key data

The US dollar performance faced downward pressure on Tuesday as investors awaited US economic data to gauge the timing of potential interest rate cuts by the Federal Reserve, Reuters reported.

Bitcoin reached a more than two-year peak, surpassing $57,000, after enterprise firm MicroStrategy Inc announced it had purchased about 3,000 more tokens, the statement added.

The yen strengthened after positive consumer inflation data, suggesting the Bank of Japan may soon exit negative rates. The US dollar index, which measures the currency against a basket of peers, remained flat at 103.77, as markets delayed expectations for a rate cut to June.

Upcoming US economic data, including durable goods and inflation measures, will provide further insight into the Fed’s policy direction. The dollar slipped against the yen, while the euro and sterling also saw modest movements.

The dollar fell 0.12 per cent to 150.505 yen, the euro held steady at $1.0850 after a 0.27 per cent increase in the previous session, while the pound declined by 0.04 per cent to $1.2680 after five consecutive days of gains.

Bitcoin continued to climb, and the Australian dollar and New Zealand dollar were also in focus ahead of key economic data and a policy meeting by the Reserve Bank of New Zealand.