On Tuesday (November 1) subsession, the rush high fell back, temporarily traded at 111.39, down 0.18%.
The battle against inflation is expected to continue this week even as Fed officials intensify debate over when to slow the pace of rate hikes to avoid throwing the world’s largest economy into a tailspin.
With the Fed’s preferred inflation measure still more than three times its 2 percent target, the outcome of the central bank‘s meeting on Tuesday and Wednesday is not in doubt: a fourth consecutive 75 basis point rate hike, taking the gauge to 3.75 percent to 4.00 percent.
But what happens next is less clear.
Projections released at the end of the Fed’s Sept. 20-21 meeting showed that most of the central bank’s 19 policymakers expect to be able to start slowing the pace of rate hikes in December and reach a peak policy rate of 4.50% to 4.75% in 2023.
Economic data has been mixed since the meeting, with US inflation still red-hot but signs that household spending and job growth are slowing.
The dollar index pared upward momentum around 111.50 early Tuesday after three straight days of gains.
In this case, the dollar versus six major indicators reflected the weakness in US Treasury yields as the market hesitated ahead of key announcements as well as US jobs data.
