The dollar hung near a seven-month low on Tuesday on wagers the U.S. central bank will start cutting interest rates from next month, with traders preparing for comments from Federal Reserve Chair Jerome Powell on Friday.
The weakness in the dollar lifted the euro to its highest this year, while sterling was perched near a one-month peak. The emerging markets currency index was also at a record high.
The Japanese yen was a shade stronger at 146.50 per dollar, hovering close to the near two-week high it touched in the previous session but still further away from the seven-month high of 141.675 it touched at the start of August.
The euro last fetched $1.1080 on Tuesday having touched $1.108775, its highest since Dec. 28 in early trading. The single currency is up 2.4% this month, on course for its strongest monthly performance since November.
The pound was steady at $1.2985 in early trading after touching a one-month high of $1.2998 in the previous session.
The dollar index , which measures the U.S. currency against six rivals, touched its lowest since Jan. 2 of 101.82 on Tuesday. The index is down more than 2% in August and set for second month in the red.
Source : Reuters
