The U.S. Dollar held steady on Monday due to weakening forecasts of a less aggressive rate hike by the Federal Reserve as Governor Christopher Waller said the bank wasn’t softening the inflation fight.

The greenback faced pressure on Thursday on news U.S. consumer prices increased less than forecast in October. The Dollar fell close to 4% in a week, the worst in two and a half years.

Yet Governor Waller said on Sunday last week’s inflation reading was “just one data point,” and other similar readings are required to prove inflation was slowing down.

Yet Waller said the Federal Reserve may now start thinking about increasing rates at a slower pace, Reuters news agency reports.

“I think the market got a little bit ahead of itself,” said Commonwealth Bank of Australia currency strategist Carol Kong. 

U.S. inflation will likely stay high and maintain the Federal Reserve’s monetary tightening path, Kong added.

Moreover, the U.S. two-year yield moved up to 4.39% after plummeting to a low of 4.29% last Friday. The U.S. 10-year yield rose six basis points to 3.87% after declining to a one-month low on Friday.

The Dollar index, which measures the currency against six peers, including the Pound, Euro and Yen, moved up 0.1% to 106.85, moving away from the close to three-month low of 106.27 hit at the end of last week.

Elsewhere the Pound fell ahead of UK Chancellor Jeremy Hunt’s Autumn Statement on Thursday, where he is forecast to outline spending cuts and tax hikes. Sterling fell 0.4% at $1.1787 after edging up 4% in the previous two sessions.

In addition, China’s onshore Yuan hit almost a two-month high against the greenback, as the central bank lifted its official guidance fixing by the most in 17 years, the Reuters report adds. The Japanese Yen fell 0.9% to 140 per Dollar, while the Euro was down 0.2% at $1.0324.