Dollar Turns Slightly Defensive, Inflation Data Next Key Test

Dollar Turns Slightly Defensive, Inflation Data Next Key Test
U.S. Dollar banknote is seen in this illustration taken on July 17, 2022. Dado Ruvic/Illustration/Reuters
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LONDON—The dollar turned defensive against other major currencies on Tuesday, with traders reluctant to push the greenback higher without further signs that another aggressive interest rate hikes from the Federal Reserve was coming in September.

U.S. inflation data on Wednesday was shaping up as the next key test for the dollar, which rose sharply after Friday’s unexpectedly strong jobs report fuelled bets on another 75 bps Fed rate hike.