The US dollar rose against Japan’s yen after the Bank of Japan indicated it didn’t need to halt negative interest rates in December, contrary to investor expectations.

Chinese deflation increased in November, sending the yuan to a three-week low.

The dollar index rose 0.16% to 104.13 due to the dollar’s advance versus the yen.

Investors will focus on November U.S. inflation data and the Federal Reserve’s interest rate decision on Wednesday.

The Fed is expected to maintain interest rates at 5.25% to 5.5% for a third meeting.

China’s consumer prices fell at the highest pace in three years in November, and factory-gate deflation increased, indicating rising deflationary pressure.