By Ambar Warrick

Investing.com — Most Asian currencies rose slightly on Tuesday, while the dollar was somewhat mixed ahead of more cues on the U.S. economy and monetary policy from key inflation data due later this week.

Still, gains in regional currencies were limited following a string of less hawkish cues from local central banks, amid signs that inflation was peaking across a bulk of the region.

was flat as data showed inflation in the country missed expectations in March, while inflation continued to fall. The reading pointed to a mixed economic rebound in the country, especially as its manufacturing sector struggles with slowing demand.

The reading also limits the potential for interest rate hikes by the People’s Bank of China, which is expected to dent the yuan’s appeal.

The jumped 0.4%, and was among the best performers for the day as data indicated an improvement in local , after the paused its rate hike cycle earlier this month.

The rose 0.2%, even as the kept interest rates steady for a second consecutive meeting on Tuesday. The bank had paused an over-year-long rate hike cycle amid cooling economic growth and retreating inflation.

The fell 0.1%, extending losses after the unexpectedly held interest rates steady last week, and signaled an extended pause in its rate hike cycle on the grounds that inflation had peaked.

The dollar was mixed against a basket of currencies, with relatively strong data fueling immediate demand for the greenback. The rose nearly 0.3%.

But fell 0.2%, and were also trading at a discount to the greenback’s current price amid expectations that the has a limited amount of rate hikes left this year.

Focus this week is squarely on for March, as well as the of the Fed’s March meeting. Both indicators are due on Wednesday, and are expected to provide more cues on the path of interest rates.

The rose 0.2% as improving sentiment dented the currency’s safe haven appeal. A dovish near-term outlook for Japanese monetary policy also kept appetite for the yen limited.

The rose 0.2% as data showed that the country’s blazed past expectations in February. But the country also logged an unexpected during the month.

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