The U.S. dollar fell to three-week lows on Tuesday after data showed inflation making strong gains in March, though the rise was not expected to alter the Federal Reserve’s commitment to keeping interest rates at rock-bottom levels for years to come.
The consumer price index jumped 0.6% last month, the largest gain since August 2012, after rising 0.4% in February, the Labor Department said on Tuesday. Excluding the volatile food and energy components, the CPI rose 0.3%. The so-called core CPI nudged up 0.1% in February.
The U.S. central bank has said that it will look through temporary increases in inflation and analysts expect it will allow inflation to run hotter than previously expected before raising rates.
The next major U.S. economic release will be retail sales data for March on Thursday.
The dollar index fell as low as 91.93, the lowest level since March 23. The euro gained 0.24% to $1.1940. The greenback fell 0.22% to 109.16 Japanese yen.
Bitcoin hit a record $63,275, extending its 2021 rally to new heights a day before the listing of Coinbase shares in the United States.
Treasury yields fall amid J&J vaccine pause, key inflation report
Treasury yields fell and prices increased on Tuesday after the U.S. halt of the Johnson & Johnson vaccine caused a bit of a flight to safety.
Also aiding the drop was a key inflation report that came in only slightly higher than expected and not as bad as some feared.
The yield on the benchmark 10-year Treasury note dipped about 6 basis points to 1.618% at around 4:20 p.m. ET. The yield on the 30-year Treasury bond fell about 5 basis points to 2.301%. Yields move inversely to prices. One basis points equals 0.01%.
Reference: CNBC
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