The dollar eased on Tuesday after its rally the previous day, but still hovered near a one-month peak as traders raised their bets on how high the U.S. Federal Reserve would need to raise interest rates to tame inflation.
The big mover on Tuesday was the Australian dollar, which surged as much as 1 percent to an intra-day high of $0.6952, after the country’s central bank raised cash rate by 25 basis points and said more increases would be needed, a more hawkish policy tilt than many had expected.
