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.
But the currency has pulled back since and in thin summer markets, succumbed to some mild selling pressure on Tuesday.
At 1050 GMT, the euro was up around 0.35 percent at $1.0226, sterling gained 0.2 percent to $1.2102, while the dollar slipped 0.1 percent to 134.86 yen….