Dollar languishes near 10-month low, kiwi tumbles after soft inflation

TOKYO (Reuters) - The U.S. dollar wallowed near a 10-month low against a basket of major currencies on Tuesday, pressured by uncertainty over the pace of the Federal Reserve's policy tightening while weak New Zealand inflation data knocked the kiwi currency. The dollar's index against a basket of six major currencies <.DXY> <=USD> sank to a 10-month low of 95.018 on Monday and was last at 95.156 in early Asian trade. From its 14-year peak of 103.82 touched on Jan. 3, it has lost 8.4 percent. Commodity Trading Tips

Friday's weak reading on U.S. inflation and retail sales fanned speculation that the Fed may not have justification for another rate hike by the end of this year, despite policymakers' projection for such a move. Money market instruments are now pricing in less than 50 percent chance of a rate increase during the rest of the year. In contrast, central bank policymakers in the euro zone, the UK and Canada have recently signalled they could adjust their policies, with the Bank of Canada raising rates last week for the first time since 2010. Nifty Trading Tips