Dollar Dominance Amid Global Currency Turmoil

The dollar remained near a two-year peak as markets anticipated U.S. economic data insights influencing the Federal Reserve's rate decisions. Meanwhile, China's decision not to defend a key psychological level for the yuan has drawn attention, affecting broader Asian currencies as well as the Australian and New Zealand dollars.

The dollar held steady, near a two-year peak, as global markets eyed upcoming U.S. economic data for hints on Federal Reserve policy. December's nonfarm payrolls report stands out among the anticipated releases.

Market watchers are also focused on the Chinese yuan, which recently breached the 7.3 per dollar mark in the onshore market, a level the People's Bank of China defended throughout December. Analysts say this move might signal a higher trading range for the yuan, potentially impacting other Asian currencies.

In broader markets, attention centers on the U.S. jobs report for economic insights and anticipated comments from Fed policymakers on inflation. Uncertainty over U.S. President-elect Trump's policy directions adds to the dollar's appeal as a safe-haven currency.

(With inputs from agencies.)