SINGAPORE, Oct 10 Reuters The dollar remained steady against major peers on Tuesday, after a pause in its rally following a slight dovish shift in Federal Reserve officials39; tone.
Moves in the Asia session were small as traders waited on further Fed appearances later in the day, Fed minutes on Wednesday and U.S. inflation data on Thursday for more guidance on the trend in interest rates.
The Australian and New Zealand dollars made oneweek highs before falling back to flat leaving the Aussie at 0.6411 and kiwi at 0.6015. Sterling, last at 1.2224 and the euro , at 1.0561, traded broadly steady.
The yen dipped marginally, handing back some of its small gains as violence in the Middle East supported buying of safehaven assets. It was last about 0.1 lower at 147.7 per dollar. The Swiss franc was steady at 0.9066 to the dollar.
The Israeli shekel was pinned at 3.95 to the dollar, just off an almost eightyear low, after the central bank promised 30 billion in foreign exchange selling.
Last week39;s hot U.S. jobs data and a Palestinian militants39; weekend attack on Israel had put the dollar higher until comments from two Fed officials on Monday noted recent rises in longterm yields might negate the need for further hikes.
If longterm interest rates remain elevated because of higher term premiums, there may be less need to raise the Fed funds rate, said Dallas Fed president Lorie Logan a notable shift from previously hawkish rhetoric.
Fed Vice Chair Philip Jefferson…