SINGAPORE, June 25 Reuters The dollar drifted lower in Asia on Friday as an agreement on U.S. infrastructure spending underpinned appetite for riskier currencies, but caution ahead of key U.S. inflation data kept losses to a minimum.
The risksensitive Antipodean currencies rose very slightly, while the euro gained 0.1 to 1.1940 and the yen rose by about the same margin to 110.80 per dollar.
Such small moves left most of the dollars recent gains intact, after it was vaulted higher in the wake of a surprise shift in policy outlook from the Federal Reserve which last week flagged soonerthanexpected interest rate rises.
Inflation data due later on Friday will offer the latest indication of how much pressure the Fed is under to move, as will labour market figures due in a weeks time leaving traders unwilling to sell the dollar too hard just in case it bounces again soon.
The dollar can jump if inflation surprises to the upside, said Joe Capurso, head of international economics at the Commonwealth Bank of Australia in Sydney. Upside inflation surprises have been the trend in the U.S. recently, he added.
Others said it would take a big number to move markets.
Economists polled by Reuters expect core personal consumption expenditures index to post its fastest rise in nearly three decades, with yearonyear gains of 3.4. The data is due at 1230 GMT.
In Asia, a combination of soothing overnight comments from New York Federal Reserve Bank President John Williams and hopes…