Is the dollar getting cheaper again? The value of the dollar against the euro on Tuesday morning declined, breaking through the mark of 1.02. Markets expect evidence of lower inflation in the U.S., which may slow the process of tightening monetary policy in the country, according to trading data.

The euro-dollar exchange rate is rising to $1.0203 from the previous close of $1.0196; the dollar-yen exchange rate, meanwhile, is rising to 135.1 yen from 135 yen. The dollar index (the exchange rate against a basket of currencies from six U.S. trading partners) is down 0.13, to 106.3 points.

The dollar is getting cheaper because on Tuesday, markets arrive in anticipation of data on annual U.S. inflation, which analysts believe slowed to 8.7 percent in July after 9.1 percent a month earlier, when the figure was the highest since 1981.

These statistics will influence the U.S. Federal Reserve’s (Fed) next steps toward tightening monetary policy, which are taking place in the fight against “runaway” inflation. But if the new data thus demonstrates the effectiveness of the measures already taken, the series of interest rate hikes could slow down, which would be negative for the dollar.