TOKYO, June 11 Reuters The dollar hovered near a onemonth peak against the euro and pushed to a oneweek high versus the yen on Tuesday as traders braced for crucial U.S. inflation data and fresh Federal Reserve interest rate forecasts the following day.

The U.S. currency was supported by higher Treasury yields in the aftermath of surprisingly robust domestic jobs data at the end of last week, which triggered a dramatic paring of bets for Fed rate cuts this year.

The Bank of Japan sets policy on Friday, and while investors expect a reduction in the central bank39;s monthly government bond purchases as early as this meeting, gaping yield differentials with the U.S. have kept the yen on the defensive.

The dollar added 0.15 to stand at 157.275 yen after earlier touching its highest since June 3 at 157.335.

The euro was flat at 1.076825 . It slid to as low as 1.0733 on Monday, a level last seen on May 9, after gains by the far right in European Parliament elections spurred French President Emmanuel Macron to call a snap election.

Sterling was GBPD3 was steady at 1.27355 ahead of labour data later in the day that is forecast to show a slowing in the decline in UK employment.

The U.S. dollar index , which measures the currency against the euro, sterling, yen and three other major peers, was little changed at 105.12, after reaching 105.39 on Monday for the first time since May 14.

Economists polled by Reuters expect headline U.S. consumer price inflation to ease to 0.1…