The dollar weakened to a two-month low on Tuesday after Federal Reserve officials signaled that the central bank was nearing the end of its tightening cycle, while the pound hit a 15-month high after pay growth exceeded expectations.
Several Fed officials said on Monday the central bank would likely need to raise interest rates further to bring down inflation. The comments knocked the greenback to a two-month low of 101.67 against a basket of currencies , as traders pared back their expectations about how much further U.S. rates may have to rise.
Sterling, meanwhile, hit a near 15-month high of $1.2913 after British wage growth hit a joint record high, heaping pressure on the Bank of England to tighten policy further to bring inflation under control.
The yen was among the biggest gainers, strengthening around 0.6% and past 141 per dollar for the first time in nearly a month. It was last trading at 140.455.
The euro rose 0.1% to $1.1012, the Australian dollar steadied at $0.6680, while the New Zealand dollar fell 0.2% to $0.6198.
The offshore Chinese yuan edged higher, last trading at 7.2055 per dollar, with sentiment underpinned by an extension of financial policy support from China's central bank to the country's beleaguered property sector.
Source: Qatar News Agency