Dollar slips lower but remains close to 8-month peak

The dollar slipped lower against the other major currencies on Tuesday, but still remained close to the previous session's eight-month peak amid mounting expectations for a U.S. rate hike in December. USD/JPY slipped 0.25% to 122.54. The dollar remained broadly supported by expectations that the Federal Reserve is on track to raise interest rates next month. New York Fed President William Dudley said Friday that there is a "strong case" for hiking rates at the central bank’s next meeting in December as long as economic data continues to remain solid. EUR/USD edged up 0.16% to 1.0653, easing off Monday's seven-month trough of 1.0591. The euro found some support after the German research institute Ifo said its Business Climate Index rose to a 17-month high of 109.0 this month from a reading of 108.2 in October, beating forecasts for 108.2. But gains were held in check since European Central Bank President Mario Draghi said on Friday that the bank is ready to act quickly to boost inflation in the euro zone and can also change the level of its deposit rate to boost the impact of quantitative easing. Elsewhere, the dollar was steady against the pound and the Swiss franc, with GBP/USD at 1.5126 and with USD/CHF at 1.0178. The Australian dollar was stronger, with AUD/USD up 0.40% at 0.7220, while NZD/USD held steady at 0.6521. Meanwhile, USD/CAD was little changed at 1.3354, not far from Monday's two-month high of 1.3437 The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.20% at 99.64, still close to Monday's eight-month peak of 100.06.