NEW YORK: The dollar edged higher to a one-month high against a basket of currencies on Tuesday, aided by data showing inflation speeding up, and as traders awaited the Federal Reserve's two-day policy meeting for hints of plans to start tapering its bond purchases.
Data on Tuesday showed US retail sales fell more than expected in May, with spending rotating back to services from goods as vaccinations allow Americans to shake off Covid-19 restrictions.
But robust demand is outpacing supply, stoking inflation, with producer price index for final demand increased 0.8% last month after rising 0.6% in April.
The dollar index, which measures the greenback against a basket of six currencies, was 0.03% higher at 90.515, after rising as high as 90.677, its highest since May 14.
The pound fell to a one-month low against the dollar on Tuesday in what analysts said was the breaking of a technical level that did not change the bullish narrative on the British currency. The British currency was last down 0.19% against the greenback. In cryptocurrencies, bitcoin lingered just above the $40,000 level, a day after it climbed above that mark for the first time in more than two weeks.
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