The dollar edged higher on Thursday as investors reassessed their expectations of the scale of rate cuts by the Federal Reserve this year, with an air of caution hanging over markets after an impressive risk rally last month.
The greenback was on the front foot in early deals in Asia, as trading returned to full swing with Japan back from an extended New Year break.
Against the yen, the dollar stood near a two-week peak and last bought 143.09 yen, having jumped more than 0.9% against the Japanese currency in the previous session, its best day since October.
The Australian dollar, often used as a proxy for risk appetite, languished near Wednesday's two-week low of $0.6703 and last bought $0.6734.
Against a basket of currencies, the greenback rose 0.06% to 102.46, flirting with a three-week peak of 102.73 hit in the previous session.
The euro eased 0.02% to $1.0921, while sterling edged 0.05% higher to $1.2669 but remained pinned near its recent three-week low.
Source: Reuters
