SINGAPORE, Jan 2 Reuters The dollar crept higher on the first trading day of the year as attention turned to economic data this week that may provide clues on the Federal Reserve39;s next moves, while bitcoin surged ahead of 45,000 for the first time since April 2022.

The dollar index , which measures the U.S. currency against six rivals, fell 2 in 2023, snapping two years of gains. It was last at 101.44, up 0.059, as investors weighed the prospect of the Fed cutting rates this year.

The dollar39;s ascent weighed on the Japanese yen the most, with the Asian currency down 0.35 at 141.36 per dollar, having slid 7 in 2023.

Rescue teams in Japan on Tuesday struggled to reach isolated areas hit by a powerful earthquake on New Year39;s Day, with reports of more than 20 people dead in a disaster that toppled buildings and knocked out power to thousands of homes.

Markets are now pricing in an 86 chance of interest rate cuts from the Fed to start from March, according to CME FedWatch tool, with over 150 basis points bps of easing anticipated in the year.

The question is when and how fast rate cuts will be delivered, Marc Chandler, chief market strategist at Bannockburn Global Forex, said in a note.

Moderating price pressures and weaker growth impulses have seen the pendulum of market sentiment swing dramatically from the 39;higher for longer39; mantra of most of last year to pricing in aggressive easing from central banks, Chandler said.

The focus now switches to a slew…