U.S. Dollar Weakens Against Majors

The U.S. dollar fell against its major counterparts in the New York session on Tuesday on hopes of a dovish pivot by the Federal Reserve. Recent data has fuelled expectations that the Fed is done raising rates.

Investors focus on U.S. personal income and spending data due on Thursday, which includes readings on inflation said to be preferred by the Federal Reserve.

Reports on weekly jobless claims, pending home sales and manufacturing activity are due along with the Fed's Beige Book as well as remarks by Fed Chair Jerome Powell.

The dollar index dropped 0.20 percent to 102.99 from the previous close of 103.20.

The greenback dropped to near 4-month lows of 0.6119 against the kiwi and 0.6632 against the aussie, off its early highs of 0.6079 and 0.6596, respectively. The greenback is seen finding support around 0.63 against the kiwi and 0.69 against the aussie.

The greenback fell to near 3-month lows of 1.2667 against the pound and 0.8777 against the franc, from its early highs of 1.2606 and 0.8819, respectively. The currency is likely to locate support around 1.31 against the pound and 0.86 against the franc.

The greenback declined to a 1-week low of 147.70 against the yen and a 3-1/2-month low of 1.0988 against the euro, reversing from its previous highs of 148.83 and 1.0934, respectively. The greenback is poised to challenge support around 144.00 against the yen and 1.12 against the euro.

Against the loonie, the greenback was down at a 1-1/2-month low of 1.3573. The greenback may locate support around the 1.33 mark.