Dollar slips on doubts Fed will speed rate hikes, euro edges up

Tokyo (Mar 21)  The dollar was on the defensive in Asian trading on Tuesday, after Chicago Federal Reserve President Charles Evans reinforced the perception that the U.S. central bank won't accelerate the pace of its interest rate hikes.

The dollar index, which tracks the greenback against a basket of six major rivals, edged down 0.1 percent to 100.30 after falling as low as 100.02 overnight, its lowest since Feb. 7.

The euro gained 0.1 percent on the day to $1.0754 , though it remained shy of last week's high of $1.0782.

France's coming two-round election on April 23 and May 7 remained in focus, with nearly 40 percent of voters saying they are undecided about which of five main contenders to back.

The leading candidates clashed in a televised debate on Monday, with centrist Emmanuel Macron accusing far-right leader Marine Le Pen of lying and seeking to divide the French. Macron apparently solidified his status as frontrunner. "There was a bit of relief rally, or a squeeze in the euro higher, on the back of news that Macron is ahead, but it's pretty much in the price and we have some ways to go before the election," said Sue Trinh, head of Asia FX strategy at Royal Bank of Canada in Hong Kong.

"U.S. dollar weakness is the main theme," she said.

Sterling edged down slightly to $1.2356 , but remained well shy of its Monday high.

SOURCE: Reuters