Anna 
On Tuesday, the dollar faced pressure due to profit-taking and was additionally weighed down by a marginally stronger yen. Japanese government officials continued their verbal intervention to support the currency, contributing to the yen’s resilience against the greenback.
In contrast, the New Zealand dollar rebounded from a four-month low, gaining 0.13% to $0.6011. Similarly, the British pound strengthened by 0.1% to $1.2649, moving away from last week’s one-month low of $1.25755.
With limited economic data scheduled for the week, market attention shifted towards the release of the Federal Reserve’s preferred inflation gauge on Friday. The U.S. core personal consumption expenditures (PCE) price index is expected to rise by 0.3% in February, maintaining the annual pace at 2.8%.
Tony Sycamore, a market analyst at IG, remarked, “A print of 3% (annually) or greater would certainly create a lot of concern that maybe the bumpy path is going to be bumpier than expected,” referring to Fed Chair’s efforts to manage interest rate expectations.
Following a series of central bank meetings last week, a shift in the global rate outlook propelled the dollar to a one-month high against major currencies. While the Fed maintained its projection of three rate hikes this year, other central banks signaled an easing bias.
Thierry Wizman, global FX and rates strategist at Macquarie, highlighted the challenge for the dollar amidst strong U.S. growth compared to the rest of the world, stating, “It’s tough for the (dollar) to sustain any weakness.”
In Japan, the dollar encountered resistance near the 152 level against the yen, prompting concerns about potential intervention from Japanese authorities. Finance Minister Shunichi Suzuki emphasized the readiness to implement measures to address the yen’s weakness.
The yuan, another currency under scrutiny, remained relatively stable despite a firmer-than-expected fixing by the People’s Bank of China. The offshore yuan edged up by 0.1% to 7.2446 per dollar amid ongoing market attention.
