US dollar rises

The dollar rose on Tuesday ahead of US inflation data that could offer clues about the Federal Reserve's monetary-easing path, while analysts assess the likely impact of President-elect Donald Trump's policies when he begins his second term, reports Reuters.

The Australian dollar dropped sharply as the Reserve Bank of Australia softened its tone on the inflation outlook, while the rally sparked by China stimulus pledges tapered off after weak Chinese trade data.

The US dollar rose 0.5% to 151.980 yen. The dollar, which measures the currency against the yen and five other major peers, rose 0.42% to 106.6.

Market participants see little action before a busy second half of the week with the US data and European Central Bank policy meeting.