Jun 21, 2022 12:58AM ET
The dollar was down in Asia on Tuesday morning as investors eye measures by major central banks to curb inflation.
The US dollar index, which tracks the greenback against a basket of other currencies, fell 0.34% to 104.35 by 12:52 p.m. ET.
The USD/JPY pair rose 0.02% to 135.10, hovering near a 24-year low against the dollar.
Japanese Finance Minister Shunichi Suzuki had said on Tuesday he was concerned about the recent sharp weakening of the yen and would respond appropriately to movements in the foreign exchange market if necessary.
The AUD/USD pair rose 0.32% to 0.6970, and the NZD/USD pair stabilised at 0.6334. Reserve Bank of Australia (RBA) Governor Philip Lowe reiterated on Tuesday that further rate hikes are likely.
On the road back to 2 to 3% inflation, Australians should be prepared for more rate hikes
For an economy with low unemployment and high inflation, interest rates are still very low.
The USD/CNY pair fell 0.06% to 6.6885, while the GBP/USD pair gained 0.13% to 1.2267. In China, COVID-19 flared up in cities like Shenzhen, fuelling concerns about the uncertain recovery path of the second largest country.
Major central banks took action to curb inflation and raise interest rates, adding to investor concerns about slowing economic growth.
St Louis Fed President James Bullard warned that US inflation expectations could be unhinged without credible Fed action, while former Treasury Secretary Lawrence Summers said the US unemployment rate would need to rise above 5% over an extended period to counteract price pressures.
In Europe, European Central Bank President Christine Lagarde said officials intend to raise interest rates in July and September despite growing concerns about tensions in financial markets.
US Federal Reserve Chairman Jerome Powell will testify before the Senate and the House of Representatives on Wednesday and Thursday.