Dollar droops as key U.S. data looms; yen firms on CPI beat

The dollar traded lower on Tuesday as markets anticipated upcoming U.S. economic data that will indicate the timing of potential interest rate cuts by the Federal Reserve. The yen strengthened slightly after consumer inflation in Japan met the Bank of Japan’s 2% target, avoiding a decline below it. The U.S. dollar index remained flat at 103.78. Expectations for a rate cut in May have been pushed back to June. U.S. durable goods data and the personal consumption expenditures price index are due later this week. The Australian and New Zealand dollars also weakened. Bitcoin reached a two-year high of $54,969.