Investing.com - The dollar rose broadly against the other major currencies on Tuesday, as investors eyed the Federal Reserve’s monthly policy meeting due to begin later in the day, as well as upcoming data on U.S. retail sales.
USD/JPY dropped 0.45% to a fresh one-and-a-half month low of 105.77.
Markets have pushed back expectations on the timing of the next rate hike by the U.S. central bank after a dismal U.S. employment report for May, which showed the slowest rate of jobs growth since September 2010.
EUR/USD declined 0.71% to 1.1212, the lowest since June 2.
The dollar was higher against the pound and the Swiss franc, with GBP/USD down 1% at 1.4127, neat the previous session’s two-month low of 1.4115, and with USD/CHF rising 0.22% to 0.9665.
Earlier Tuesday, the U.K. Office for National Statistics said the annual rate of inflation remained steady at 0.3% in May, slightly below economists’ expectations for an increase of 0.4%.
Core inflation, which excludes volatile energy and food costs, remained steady at 1.2%, falling slightly short of forecasts for a 1.3% increase.
Sterling remained under pressure after a number of opinion polls showed that the EU referendum race is tightening ahead of the June 23 Brexit vote.
A poll conducted by YouGov for The Times published late Monday showed that the Leave campaign held 46% support compared with 39% support for the Remain camp. Undecided voters totaled 11%.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.70% at 0.7335 and with NZD/USD declining 0.84% to 0.7003.
Earlier Tuesday, the National Australia Bank said its business confidence index fell to 3 in May from a reading of 5 the previous month.
Elsewhere, USD/CAD edged up 0.18% to a one-week high of 1.2862.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.53% at 94.93, the highest since June 3.