NEW YORK: The dollar clung to modest gains against major currencies on Tuesday but remained rangebound as traders awaited US debt ceiling talks and tried to digest how a host of conflicting economic data will influence monetary policy and global growth.

Chinese imports contracted sharply in April from a year earlier while exports grew more slowly than in March, which had a limited impact on currencies, but contributed to risk-off moves broadly across markets.

The euro dipped 0.41% to $1.0958.

Sterling was broadly flat and bought $1.2599, ahead of Thursday’s central bank policy meeting.

The Bank of England looks set to raise interest rates to 4.5%, as it tries to fight the highest inflation rate in Western Europe.

The Japanese yen was last seen trading at 135.075 per dollar, with Bank of Japan (BOJ) Governor Kazuo Ueda signalling that the central bank may end its yield curve control policy and start shrinking its balance sheet.