Dollar is under pressure, ahead of US data

The dollar started this week’s trading under pressure on Monday as traders bet that it may have peaked along with US interest rates as they await the release of inflation and loan data this week.

Sterling rose slightly on Monday and hovered around an 11-month high of $1.2652, with particular attention turned to it ahead of an expected rate hike by the Bank of England on Thursday.

The pound sterling also rose against the euro, which recorded 87.36 pence in the latest trading, after falling to 87.11 pence on Friday, its lowest level against the British currency this year.

However, the euro rose against the dollar nearly 16 percent from its lows in September. It rose 0.25% to $1.1047, supported by expectations that the European Central Bank will keep interest rates high for a longer period compared to the Federal Reserve.

Last week, the US central bank raised interest rates by 25 basis points but appeared to be slightly more cautious than its peers regarding the outlook, abandoning guidance on the need for more rate hikes in the future.

The dollar index, which measures the performance of the US currency against a basket of six major currencies, fell 0.2 percent at 101.11 points. Last month, it scored 100.78 points, its lowest level in a year.

US inflation data is due on Wednesday.

Against the yen, the dollar was 0.1% stronger at 135.0, although it fell 0.46% against the Swiss franc to 0.8874.

While the Australian dollar recorded its highest level in three weeks and rose 0.5 percent to $ 0.6784.