* FX volatility index falls to Feb 2020 levels
* Euro lower ahead of ECB meeting on Thursday
* Traders wait for policy cues before making new bets
* Graphic: World FX rates tmsnrt.rs/2RBWI5E
(Updates prices, adds analyst comment)
By Sinead Carew
NEW YORK, June 8 (Reuters) - The U.S. dollar edged up slightly and currency market volatility on Tuesday
hit the lowest level in more than a year, as investors sat on the sidelines waiting for clearer signals on
inflation levels and central bank policies around the world.
With inflation updates expected from China, Europe and the United States this week and an impending
European Central Bank meeting on Thursday to be followed by a U.S. Federal Reserve meeting next week,
currency investors appeared to be treading water while the S&P 500 dipped very slightly.
Range-bound currency markets meant a fall in volatility. The Deutsche Bank Currency Volatility Index
hit its lowest level since February 2020.
"All the major currencies are having muted reaction right now as they wait," said JB Mackenzie, managing
director of futures and forex at TD Ameritrade. "We're looking at the inflation numbers to see how the
economies are running. Are they very hot and, if so, does that mean there could be a reaction from central
banks globally?"
Traders on Tuesday sent longer-term U.S. Treasury yields to their lowest in more than a month after a
report showed small business owners less confident, and narrowing the spread of a closely watched part of
the yield curve.
The dollar index was last up 0.12%, while the euro fell 0.09% against the greenback to $1.2179
.
The British pound fell 0.15% to $1.4155 and the Australian dollar eased 0.21% to $0.7739
, with both stuck in ranges seen over the past couple of months.
Cryptocurrencies were more volatile on the day with Bitcoin last down 3% at $32,544 after
hitting a session low of $31,025 - also its lowest level since May 19. Ether was down 7% at $2,464.47
.
========================================================
Currency bid prices at 2:44PM (1844 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index 90.0810 89.9880 +0.12% 0.111% +90.1810 +89.9530
Euro/Dollar $1.2179 $1.2190 -0.09% -0.32% +$1.2194 +$1.2165
Dollar/Yen 109.4650 109.2550 +0.19% +5.94% +109.5550 +109.2000
Euro/Yen 133.30 133.16 +0.11% +5.03% +133.4200 +133.1400
Dollar/Swiss 0.8966 0.8976 -0.10% +1.35% +0.8989 +0.8953
Sterling/Dollar $1.4155 $1.4177 -0.15% +3.61% +$1.4184 +$1.4122
Dollar/Canadian 1.2117 1.2083 +0.28% -4.85% +1.2117 +1.2071
Aussie/Dollar $0.7739 $0.7756 -0.21% +0.61% +$0.7763 +$0.7732
Euro/Swiss 1.0920 1.0938 -0.16% +1.05% +1.0945 +1.0911
Euro/Sterling 0.8603 0.8596 +0.08% -3.74% +0.8627 +0.8594
NZ $0.7196 $0.7230 -0.47% +0.20% +$0.7232 +$0.7188
Dollar/Dollar
Dollar/Norway 8.2585 8.2600 +0.12% -3.70% +8.2810 +8.2405
Euro/Norway 10.0586 10.0695 -0.11% -3.90% +10.0798 +10.0410
Dollar/Sweden 8.2616 8.2627 -0.10% +0.80% +8.2870 +8.2535
Euro/Sweden 10.0615 10.0715 -0.10% -0.15% +10.0883 +10.0586
(Additional reporting by Tommy Wilkes in London, Editing by Robert Birsel, Will Dunham and Bernadette Baum)
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