Dollar drifts higher vs yen ahead of U.S. inflation Data due at...

	  Dollar drifts higher vs yen ahead of U.S. inflation 

	  Data due at 1330 GMT 

	  Central bank meetings coming up in U.S., Europe, UK, 

Switzerland

The dollar was firm on Tuesday leading in to the release of U.S. inflation data and the final Federal Reserve meeting of the year, with investors waiting to update interest rate outlooks.

A month ago, a small surprise to the downside unleashed a wave of bond-buying and dollar selling on the expectation that inflation had peaked. The U.S. figures, due at 1330 GMT, will test that assumption, while the Fed decision on Wednesday should provide some reasonably instant feedback from policymakers.

The dollar gained 0.8% on the yen JPY=EBS on Monday and was steady at 137.70 yen through the Asia session on Tuesday. It also held onto gains versus the Australian dollar AUD=D3 at $0.6759.

Economists polled by Reuters expect November core inflation to be steady at 0.3% month-on-month USCPF=ECI but see moderation in the annual pace, with headline prices seen 7.3% higher than a year earlier USCPNY=ECI .

"A miss in either direction may get the markets to assume a follow-up reaction from the Fed," said NatWest Markets' head of economics and strategy, John Briggs.

The U.S. dollar has been supported by high and rising interest rate expectations as the Fed has hiked its benchmark funds rate to counter inflation, leaving the currency vulnerable to selling if inflation seems to be cooling.

The dollar index =USD hovered at 105.01 on Tuesday, down from a 20-year high of 114.78 in late September.

Market projections for the peak in U.S. interest rates have also slipped, with futures pricing indicating the Fed funds rate - currently set between 3.75% and 4% - staying below 5%. 0#FF:

The Fed is widely expected to hike the funds rate by 50 basis points on Wednesday, a step down in pace after four consecutive 75 bp hikes. FEDWATCH

The euro EUR=EBS , meanwhile, was steady at $1.0539, as was sterling GBP=D3 at $1.2268. The Swiss franc CHF=EBS was at 0.9360 per dollar as traders eyed Thursday meetings of the European Central Bank, Bank of England and Swiss National Bank.

Like the Fed, all are expected to hike by 50 bps. Later on Tuesday, British labour data is due, as well as surveys of German business conditions and sentiment.

The New Zealand dollar NZD=D3 was steady at $0.6386. The Chinese yuan CNY=CFXS slipped a bit on Monday as enthusiasm about China's COVID-19 re-opening prospects started to waver, even though Hong Kong relaxed some of its restrictions.

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	Currency bid prices at 0534 GMT 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS																	   

							  $1.0541		 $1.0539	+0.00%		  +0.00%	  +1.0554	 +1.0532 
																								 
 Dollar/Yen		JPY=EBS																	   

							  137.6800		137.6700   +0.17%		  +0.00%	  +137.9600   +137.5600 
																								 
 Euro/Yen		 
				  S>		  145.14		  145.04	 +0.07%		  +0.00%	  +145.3200   +144.9100 
																								 
 Dollar/Swiss	  CHF=EBS																	   

							  0.9359		  0.9363	 -0.02%		  +0.00%	  +0.9368	 +0.9354 
																								 
 Sterling/Dollar   GBP=D3																		

							  1.2270		  1.2274	 -0.05%		  +0.00%	  +1.2290	 +1.2254 
																								 
 Dollar/Canadian   CAD=D3																		

							  1.3624		  1.3633	 -0.07%		  +0.00%	  +1.3644	 +1.3613 
																								 
 Aussie/Dollar	 AUD=D3																		

							  0.6761		  0.6747	 +0.22%		  +0.00%	  +0.6774	 +0.6740 
																								 
 NZ				NZD=D3																		

 Dollar/Dollar				0.6388		  0.6384	 +0.05%		  +0.00%	  +0.6405	 +0.6375 
																								 
																								 
 All spots  FX=  
Tokyo spots  AFX=  Europe spots  EFX=   Volatilities  FXVOL=   Tokyo Forex market info from BOJ  TKYFX  
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World FX rates	https://tmsnrt.rs/2RBWI5E 

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