USD fell on the European market on Tuesday against a basket of major and minor currencies, down from a 17-month high recorded earlier in the day by correction and profit taking for the first loss in four days. Strong prospects for the Federal Reserve’s continued tightening of monetary policy and raising interest rates remained.

USD index fell 0.15% to 12: 05 GMT, trading at 97.28 points, the opening level of 97.43 points, the highest at 97.49 and the lowest at 97.24.

The index ended yesterday’s trading up by 0.8%, its third consecutive daily gain, with the biggest daily gain since June 14, reaching its highest level in 17 months at 97.51 points.

Over the past week, the index rose 0.5%, its fourth consecutive weekly gain, supported by the Federal Reserve’s monetary policy statement and strong economic data.

During the monetary policy statement last week, Federal Reserve members praised the strength of the labor market, rising spending and steady inflation near the target, and stressed that interest rates should be gradually raised to keep up with the country’s strong growth path.

This statement reinforced the likelihood that the Federal Reserve will raise US interest rates at its December meeting for the fourth time this year, as well as the prospect of continued monetary policy tightening in 2019 by raising interest rates three times.

The prospects were also boosted by strong economic data showing US producer prices in October at the highest pace since January 2017. Producer prices are a leading indicator of consumer prices, the main gauge of inflation, and consumer price data will be released on Wednesday.