The dollar edged lower on Monday as inflation jitters,exacerbated by record high prices paid in a regional U.S. manufacturing survey,benefited riskier currencies at the greenback’s expense.
But the U.S. 10-year Treasury yield was little changed as market participants sought clues regarding the FederalReserve’s tolerance for near- and medium-term inflation.
The Empire State report from the New York Federal Reserve showed a survey record high of prices paid by manufacturers in New York state as materials producers struggle to keep up with booming demand.
The dollar index was last down 0.14% at90.157. The euro gained 0.09% to $1.2159 and the dollar fell 0.15% to 109.175 Japanese yen.
Bitcoin dropped to a three-month low after Tesla Incboss Elon Musk suggested over the weekend that the electric automaker may have already sold some of its holdings in the digital currency.
The U.S. Federal Reserve is expected tore lease the minutes from its April monetary policy on Wednesday, which market participants will scrutinize for clues regarding the central bank’s views on current inflation spikes.
“The Fed is still saying they’re going to be very patient,” Chandler added. “If the U.S. doesn’t offer higher interest rates, the dollar bears the burden, and that’s where we are now.”
Treasury yields are flat to start the week
Treasury traded mostly flat on Monday, as investors appeared to take a breather after last week’s hotter-than-expected inflation prints caused some investors to ditch U.S. debt.
The yield on the benchmark 10-year Treasury note rose to1.64%, while the yield on the 30-year Treasury bond dipped to 2.354%. Yields move inversely to prices.
Reference: CNBC
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