The dollar was on the back foot on Tuesday, owing to profit taking and pressured in part by a slightly stronger yen as Japanese government officials continued with their jawboning to defend the currency. Against the greenback, the New Zealand dollar rebounded from a four-month low and last bought $0.5999, and likewise for sterling which firmed to $1.2636, away from last week's one-month trough of $1.25755. With a relatively light economic data calendar for the week, the market focus turns to the release of the Federal Reserve's favoured inflation measure on Friday, which could guide the path of the U.S. interest rate outlook. The U.S. core personal consumption expenditures (PCE) price index is seen rising 0.3% in February, which would keep the annual pace at 2.8%. While the Fed stuck to its projection of three rate cuts this year, other major central banks similarly signalled that an easing cycle was in play. In Japan, the greenback fell 0.04% against the yen to 151.37, facing great resistance near the 152 level due to the threat of intervention from Japanese authorities. Japanese Finance Minister Shunichi Suzuki on Tuesday said that he would not rule out any measures to cope with the yen's weakening, echoing a warning from Tokyo's top currency diplomat the previous day. The yen has slid more than 1% since the Bank of Japan's (BOJ) landmark rate hike last week, as traders continue to focus on the still-stark interest rate differentials between Japan and the rest of the world, particularly the United States. Local authorities have grown increasingly vocal about their discomfort over the currency's slide, as it nears a multi-decade low that was hit in 2022.