The greenback has edged from a two-decade high this week and was a touch softer across the board in early Asia trade, while U.S. bond yields have pulled back slightly as traders reckon aggressive near-term hikes will drag on longer-run U.S. growth.
The euro <EUR=EBS> rose about 0.1% on the dollar to $1.0446 and the Australian and New Zealand dollars lifted about 0.1% and are off multi-year lows.
China's yuan <CNH=D3> was steady at 6.7953 per dollar in offshore trade, and seems to be finding a base after sliding more than 6% in a month. [CNY/]
Sterling <GBP=D3> has bounced about 1.5% from a two-year hold and was steady at $1.2328 on Tuesday. The yen <JPY=EBS> held at 129.115 and is holding above a two-decade trough.
The U.S. dollar index <=USD> dipped marginally to 104.100 and is about 0.8% below Friday's 20-year peak of 105.100.
Global interest rate expectations are also growing more hawkish.
The gap between 10-year German <DE10YIL=RR> and U.S. real yields <US10YTIP=RR> has narrowed by more than 30 basis points this month and central banks in Britain and Australia have raised rates.
The Australian dollar <AUD=D3> last bought $0.6976 and the New Zealand dollar <NZD=D3> $0.6309.
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