The U.S. dollar hit a 2-1/2-month low early in the New York session, then stabilized around those levels on Tuesday afternoon, the eve of U.S. consumer price data, as investors bet that rising inflation could erode the currency’s value.
Against a basket of its major rivals, the dollar dropped as low as 89.979, its lowest since Feb. 25, and was last down 0.11% at 90.138.
A disappointing employment report last week triggered a widespread selloff in the greenback. And though surging commodity prices have raised concerns of higher inflation, markets believe the Fed will keep its commitment to low rates and hefty asset purchases.
The euro hit a 2-1/2-month high during the session and was last up 0.21% at $1.215.
In cryptocurrencies, ether dipped from record levels hit on Monday, but remained up 2.60% on the day to $4,057. The second-biggest digital token has rallied roughly 46% so far in May.
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TREASURIES-U.S. yields rise as inflation worry simmers
Treasury yields climbed on Tuesday as inflation concerns helped drive a sell-off in equity markets while investors girded for a closely watched reading on consumer prices on Wednesday.
Yields on longer-dated Treasuries were up for a third straight day, with the yield on 10-year Treasury note up 2.1 basis points at 1.624%.
Investors awaited Wednesday's April consumer price index data to see if the U.S. Federal Reserve will begin to alter its stance on inflation.
Reference: Reuters
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