Dollar Nears Two-Week High as Investors Eye Economic Data

The U.S. dollar remained near a two-week high as investors awaited significant economic data, including U.S. payrolls, which could impact the Federal Reserve's expected interest rate cuts. Meanwhile, the Japanese yen broke its losing streak, buoyed by the Bank of Japan's intentions to continue raising rates if economic conditions align with policymaker expectations.

The U.S. dollar hovered close to a two-week high on Tuesday as investors anticipated a slew of economic data, including Friday's U.S. payrolls report, which could influence the Federal Reserve's expected interest rate cuts.

Amid these developments, Japan's yen broke a four-day losing streak against the dollar. Media reports cited the Bank of Japan governor's reiteration, in a document submitted to a government panel, that the central bank would continue raising interest rates if the economy and inflation performed as anticipated.

Investors' focus this week is on the U.S. payrolls data, with further job-market indicators like job openings data and the jobless claims report also under the spotlight. Market participants see a 69% chance of a 25 basis points cut at the Fed's mid-September meeting.

(With inputs from agencies.)