By Gina Lee

Investing.com – The dollar was down on Thursday morning in Asia, remaining below a 16-month peak. Investors have asked whether or not the U.S. dollar rally is slowing.

At 22:40 GMT (3:40 am GMT), The Index that monitors the greenback against various currencies fell 0.08% to 95.748. The greenback rose to 96.226 Wednesday, which is its highest point since mid-2018.

Both the pair dropped 0.02%, to 114.05.

This pair fell 0.2% to 0.7268. However, it was higher by 0.33% to 0.7020.

Inching up 0.2%, the pair rose to 6.3787. The pair rose 0.10% up to 1.3494. The U.K. inflation rose in October with the consumer price index rising 1.1% to 4.2%. These higher than expected levels are putting pressure on Bank of England to raise interest rates in December.

Euro was close to $1.1316. This is despite the fact that the European Central Bank, widely believed to be at the back of the pack in raising interest rates, was still near its 16-month low.

Better-than-expected U.S. retail sales data earlier in the week gave the dollar’s recent rally a boost. The U.S. Federal Reserve is expected to raise rates in the middle 2022, after inflation reached a 30-year record.

Pictet Wealth Management FX strategist Luc Luyet stated that “the viability of the current dollar strength over the next few months seems far from certain.”

The Fed’s market expectations are becoming more hawkish. This suggests limited upside for the dollar. Furthermore, the economic growth outlook may turn more supportive of the euro as the worst of the slowdown of China’s economic activity looks mostly behind us, whereas COVID-19 and energy import costs may prove less of an issue than the past winter,” Luyet added.

Other investors viewed the dollar’s dip as an opportunity to buy. Analysts at Westpac stated in a note that dips have been difficult to find lately. However, anything below the low-95s seems like a good buying opportunity.

Oil prices fell to six week lows, causing commodity currencies to plummet. Nearly six weeks after its low on Wednesday, the Canadian dollar stood at 1.2608 against its U.S counterpart. In early 2022, the Bank of Canada will likely increase interest rates.