2024.01.0920:32:00UTC+00Dollar Rises Against Major Rivals Ahead Of Inflation Data

The U.S. dollar moved higher against its major counterparts on Tuesday, ahead of the crucial inflation data, due later in the week.

The dollar was supported by hawkish comments from some Fed officials. Atlanta Fed President Raphael Bostic on Monday reiterated his expectation of two rate cuts by the Fed this year.

Separately, Federal Reserve Governor Michelle Bowman backed eventual rate cuts if inflation falls further towards the Fed's 2 percent target.

Market participants are pricing in about a 59.1% chance of a rate cut by March, compared with a 69.6% chance last week.

In economic news today, a report released by the Commerce Department showed the trade deficit narrowed to $63.2 billion in November from a revised $64.5 billion in October. Economists had expected the trade deficit to widen to $65.0 billion from the $64.3 billion originally reported for the previous month.

The unexpectedly smaller trade deficit came as the value of imports tumbled by 1.9 percent to $316.9 billion, while the value of export slumped by 1.9 percent to $253.7 billion.

The dollar index, which climbed to 102.66 around late morning, was hovering around 102.55 a little while ago, gaining more than 0.3%.

Against the Euro, the dollar strengthened to 1.0930, gaining about 0.2%. Against Pound Sterling, the dollar firmed to 1.2706, up from Monday's close of 1.2706 against a unit of Sterling.

The dollar gained against the Japanese currency, fetching 144.47 a unit, up from 144.23 yen a unit. Against the Aussie, the dollar was up at 0.6687, firming from 0.6721.

The dollar firmed to CHF 0.8527 from CHF 0.8479. Against the Loonie, the dollar climbed to C$ 1.3393 from C$ 1.3348.