Dollar steadies with focus on US inflation data

The US dollar held steadily on Tuesday against a basket of major currencies, ahead of key US inflation data, which provide cues on the chances of a near monetary policy tightening.

The dollar index held at 92.88 points as of 11:50 GMT, after opening at 92.88 points, and hit an intraday high at 92.66 points and a low at 92.49 points.

The greenback was nearly flat yesterday, after hitting a 3-week high at 92.88.

The Federal Reserve's survey to measure inflation expectations during August in the US jumped to the highest level since 2013.

As inflationary pressures mount on policymakers, bets for a policy tightening by the Federal Reserve before yearend mounts in a step that will lead to interest rate hikes later on.

Now investors await a variety of important US data on the inflation levels in the US during August, which would help determine the likely path of tightening the US monetary policy. 

At 12:30 GMT, the US consumer price index is expected up by 5.3% y/y in August from 5.4% in July, and the monthly reading is expected at 0.4% from 0.5%.