The dollar hovered just below a three-week high against a basket of currencies on Tuesday as traders assessed the latest inflation reading.

The dollar has also been underpinned by the gradual rise in recent weeks in Treasury yields, as investors weigh the odds that Federal Reserve Chair Jerome Powell might be forced to leave his role early, given U.S. President Donald Trump’s repeated criticism of the head of the central bank. But the data came in largely in line with expectations.

The dollar was little changed at 147.71 yen, after earlier rising to the highest since June 23 at 147.89 yen.

The dollar index, which tracks the currency against the yen, euro and four others, rose slightly to 98.14, not far below the overnight peak of 98.136, the highest since June 25.

Powell has said he expects inflation to increase this summer as a result of tariffs, which is seen keeping the U.S. central bank on hold until later in the year.

Economists polled by Reuters expect headline inflation to increase to 2.7% on an annual basis, up from 2.4% the prior month. Core inflation is expected to rise to 3.0%, from 2.8%.

“Should inflation fail to materialise or remain steady, questions may arise regarding the Fed’s recent decision not to cut rates, potentially intensifying calls for monetary easing,” James Kniveton, senior corporate FX dealer at Convera, wrote in a client note.

“Calls from the White House for leadership changes at the Fed may increase.”

Trump on Monday renewed his attacks on Powell, saying interest rates should be at 1% or lower, rather than the 4.25% to 4.50% range the Fed has kept the key rate at so far this year.

Fed funds futures traders have been pricing in about 50 basis points of interest rate cuts by year-end, with the first quarter-point reduction seen as likely in September.

Currencies barely reacted to data showing China’s economy grew 5.2% last quarter, slightly topping analysts’ forecasts - in a sign of resilience against U.S. tariffs.

At the same time, analysts warned of underlying weakness and rising risks later in the year that will ramp up pressure on Beijing to roll out more stimulus.

The Chinese yuan weakened slightly to 7.1766 per dollar in offshore trading, before recovering modestly to 7.175.

The pound rose 0.2% to $1.1687 ahead of Bank of England Governor Andrew Bailey’s annual “Mansion House” address to London’s financial sector on Tuesday, along with finance minister Rachel Reeves.