The offshore Chinese yuan eased 0.04% to $6.8783 per dollar.
In the U.S., data released on Monday showed confidence among single-family homebuilders improved for a fourth consecutive month in April, while manufacturing activity in New York state increased for the first time in five months. Markets are pricing in a 91% chance of the Fed raising interest rates by 25 basis points at its next meeting in May, CME FedWatch tool showed, with traders expecting rate cuts towards the end of the year.
"The dollar can remain sensitive to the strength, or not, of the economic data as the Fed likely nears the end of their tightening cycle," said Kristina Clifton, an economist at Commonwealth Bank of Australia (CBA). The euro up 0.04% to $1.09320, easing away from the one-year high of $1.10755 it touched last week, with traders expecting the region's central back to stick to its monetary tightening path.
The Japanese yen weakened 0.03% to 134.52 per dollar, hovering around the one-month peak of 134.57 it touched on Monday.
Sterling was last trading at $1.2381, up 0.06% on the day ahead of employment data that could potentially cause some volatility in the pound if the report shows that the labour market is not cooling.
CBA's Clifton said Britain's policy makers will be watching the wages data closely for further confirmation that private sector income growth is slowing.
Bank of England in recent communications cited slower private sector wages as a factor behind its expectation that core inflation could drop back to target, Clifton added. The kiwi rose 0.05% to $0.618. The Australian dollar rose 0.24% to $0.672 after the minutes of the last Reserve Bank of Australia meeting showed that the central bank considered an 11th-consecutive rate hike in April before deciding to pause.
The central bank, however, said it was ready to tighten further if inflation and demand failed to cool.
======================================================== Currency bid prices at 0247 GMT Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change
Session
Euro/Dollar $1.0933 $1.0928 +0.05% +2.03% +1.0936 +1.0922
Dollar/Yen 134.5250 134.4400 +0.07% +2.52% +134.6950 +134.2800
Euro/Yen <EURJPY=EB 147.07 146.94 +0.09% +4.83% +147.2100 +146.7400
S>
Dollar/Swiss 0.8975 0.8989 -0.13% -2.91% +0.8987 +0.8977
Sterling/Dollar 1.2381 1.2378 +0.03% +2.39% +1.2385 +1.2368
Dollar/Canadian 1.3385 1.3391 -0.03% -1.20% +1.3396 +1.3385
Aussie/Dollar 0.6717 0.6701 +0.23% -1.47% +0.6721 +0.6698
NZ 0.6186 0.6182 +0.06% -2.59% +0.6192 +0.6180
Dollar/Dollar
All spots Tokyo spots Europe spots Volatilities Tokyo Forex market info from BOJ <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Ankur Banerjee in Singapore; Editing by Shri Navaratnam and Jamie Freed)
Twitter: @AnkurBanerjee17;))