Dollar Turns In Mixed Performance Against Major Counterparts

(RTTNews) - The U.S. dollar turned in a mixed performance against its major counterparts on Tuesday, with traders assessing the recent data from across the globe and speculating about the Bank of Japan's policy stance.

The New York Federal Reserve released a report showing a significant contraction in regional manufacturing activity in the month of January.

The New York Fed said its general business conditions plunged to a negative 32.9 in January from a negative 11.2 in December, with a negative reading indicating a contraction. Economists had expected the index to climb to a negative 4.5.

The dollar index, which dropped to 101.94 around mid morning, recovered subsequently and was last seen at 102.40, up nearly 0.2% from the previous close.

Against the Euro, the dollar firmed to 1.0791 after having weakened to 1.0871 earlier in the day.

The dollar is down against Pound Sterling at 1.2286, dropping from 1.2196.

Against the Japanese currency, the dollar is down, fetching 128.17 yen a unit, compared with the previous close of 128.57 yen. It is widely speculated that the Bank of Japan might call for an exit from its decade-long ultra-loose monetary policy on Wednesday.

The dollar is weak against the Aussie with the AUD/USD pair at 0.6990.

Against Swiss franc, the dollar weakened to CHF 0.9218 from CHF 0.9262.

The dollar was down slightly against the loonie at C$1.3391, compared with previous close of C$1.3409.

Data from Statistics Canada showed Canada's annual inflation rate fell to 6.3% in December of 2022, the least since February 2022 and below market expectations of 6.4%, compared to the 6.8% in November and further declining from the 1983-high of 8.1% from June.

On a monthly basis, the Canadian CPI declined by 0.6%, the most since April 2020.