Zhang Mengying

Investing.com – The dollar was up on Tuesday morning in Asia over expectations that the U.S. Federal Reserve will deliver more interest rate hikes.

This chart tracks how the greenback compares to a basket other currencies. It was up 0.6% to 102.6 at 12:28 ET (4:28 GMT).

This pair rose 0.58% to 132.63

On Tuesday, the dollar reached 132.305 Japanese yen – an unprecedented level since April 2002. The currency rose to 3.05% on the first day in almost four weeks.

As the yen’s sharp decline dented consumers’ confidence, reiterated an unwavering commitment to “powerful” monetary stimulus on Monday.

Carol Kong, a CBA strategist said that JPY would continue to be able to take advantage of safe-haven flows as long as Japan has a surplus.

She said, “As such we don’t anticipate a repetition of the rapid USD/JPY appreciate seen in March and April.”

The price of the pair rose 0.521% to 0.7288 in advance of the policy announcement by the later in the morning. Expect the RBA to announce back-to–back interest rate rises for only 12 years.

This pair increased by 0.04% to 0.6492

While the pair edged up by 0.14% at 6.6630, it fell by 0.13% at 1.2514.

Prior to the Thursday’s policy announcement, the euro dropped 0.09% at $1.0686. Investors are pricing in serval increases from the ECB.

Investors are now waiting for information on the path of interest rate increases, as there is strong evidence that more interest rates will be hiked.

“Friday’s inflation report will likely show that inflation is not easing just yet, but that the odds of a recession are still low,” OANDA senior market analyst Edward Moya said in a note.

Wall Street must wait until there are more reports on inflation before they can make an informed decision about when the Fed might alter its tightening pace.