Dollar Up as Investors Expect More Interest Rate Hikes By

By Zhang Mengying

Investing.com – The dollar was up on Tuesday morning in Asia over expectations that the U.S. Federal Reserve will deliver more interest rate hikes.

that tracks the greenback against a basket of other currencies edged up 0.16% to 102.6 by 12:28 PM ET (4:28 AM GMT).

The pair jumped 0.58% to 132.63.

The dollar pushed as high as 132.305 yen on Tuesday – a level not seen since April 2002 as the rose to 3.05% for the first time in nearly four weeks.

As the yen’s sharp decline dented consumers’ confidence, reiterated an unwavering commitment to “powerful” monetary stimulus on Monday.

“We consider JPY will continue to benefit from safe-haven flows so long as Japan’s current account remains in surplus,” CBA strategist Carol Kong said in a note.

“As such, we do not anticipate a repeat of the rapid USD/JPY appreciation seen in March and April,” she added.

The pair gained 0.51% to 0.7288 ahead of the policy decision from the , which is due later in the day. The RBA is expected to deliver back-to-back interest rate hikes for the first time in 12 years.

The pair inched up 0.04% to 0.6492.

The pair edged up 0.14% to 6.6630, while the pair edged down 0.13% to 1.2514.

The euro slipped 0.09% to $1.0686 ahead of the ‘s policy decision on Thursday. Investors have priced in serval hikes from the ECB.

With a strong signaling more interest hikes, investors now await the for clues on the interest rate hike path, which is due this Friday.

“Friday’s inflation report will likely show that inflation is not easing just yet, but that the odds of a recession are still low,” OANDA senior market analyst Edward Moya said in a note.

“Wall Street will need to wait for a couple more inflation reports after this one before anyone can confidently make a call as to when the Fed may alter their tightening course.”