"That's the near-term momentum and that's the path of least resistance," Tan said. "I wouldn’t fight it for now... a further extension of this rally is likely in my view." A blockbuster U.S. employment report in early February sparked the rebound in the dollar, which has been helped along by a series of strong data releases. Traders on Tuesday were projecting the Fed's main interest rate would rise to peak around 5.35% in July, according to Refinitiv data based on derivative market pricing. At the start of February, expectations were for a peak just below 5%. The Fed has raised rates to a range of 4.5% to 4.75%, from 0% to 0.25% as recently as March 2022. Investors have also increased their ECB rate bets. Deutsche Bank on Tuesday said it now expects rates to rise to 3.75%, having previously expected them to rise to 3.25% from their current level of 2.5%. The dollar slipped 0.1% to 134.85 yen , after rising more than 0.5% on Tuesday.
The pound was down 0.26% to $1.208.It climbed 0.6% on Tuesday after British survey data also came in strong. Over in the antipodes, the kiwi was last flat at $0.622, after having risen to an intra-day high of $0.625 earlier in the session following a hawkish rate hike from the Reserve Bank of New Zealand. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Euro US non-farm payrolls ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Harry Robertson and Rae Wee; Editing by Simon Cameron-Moore)
rae.wee@thomsonreuters.com))