Dollar steadies as eyes turn to US inflation data

The dollar nursed losses on Tuesday ahead of United States inflation data that investors hope might show some signs of softening, while the euro rose on hawkish comments from policymakers that rates would need to increase further. The euro was last up 0.06 per cent to $1.013, after hitting a nearly one-month high of $1.0198 in the previous session and gaining 0.76pc overnight. Sterling was up 0.01pc to $1.1684, after rising 0.86pc overnight, the largest daily increase in a month. The kiwi and the yen also eked out small gains in early Asia trade against a softer dollar. US inflation data is due at 1230 GMT and the consensus is for the core inflation rate last month to have risen 0.3pc month-on-month, the same as in July. Recent dollar gains have slowed on market expectations that peaking inflation will mean less aggressive interest rate hikes from the Federal Reserve.