The greenback edged lower on Tuesday, meanwhile the yen advanced following the recent BOJ’s policy meeting.

The dollar index that gauges the greenback versus its major pairs dropped 0.1% at 102.997, giving up 2% gains witnessed since the beginning of 2024.

The US dollar has declined on Tuesday, but held near one-month peak as traders factored in a higher likelihood that Fed will keep rates unchanged in March as bets were dashed after anticipation of early interest rate cut.

Investors will be awaiting key inflation figures to process, GDP figures for the Q4 is predicted to slow down, while the preferred inflation measure for Fed is projected to steady in December.

EUR/USD edged up by 0.1% at 1.0886, before the ECB’s policy meeting.

GBP/USD advanced by 0.2% at 1.2724, as the pound was buoyed by the release of the UK public sector borrowing that slumped to £7.8 billion the previous month.

USD/JPY slid by 0.5% to 147.39, post the BOJ kept its low interest rate and dovish policies in place, as was generally anticipated.