Dollar falls as Fed officials say hikes to continue; yen slides

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The U.S. dollar slipped Tuesday after more Federal Reserve officials made the case for even tighter U.S. monetary policy.

The dollar index, which measures the currency against six counterparts including the yen and euro, slipped 0.38% to 106.26.

The index tumbled 3.9% last week, its worst performance since March 2020, after U.S. consumer prices rose less than expected, stoking speculation a peak in rates might be near.

Fed Vice Chair Lael Brainard on Monday echoed weekend comments by Fed Governor Christopher Waller that interest rates need to keep rising to battle inflation, although potentially at a slower pace. Brainard also stressed that risks will become more two-sided.

Money markets are currently pricing in an 89% probability that the Federal Open Market Committee (FOMC) will slow the pace of hikes to a half point at its next meeting on Dec. 14, against 11% odds for…

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