Dollar subdued as investors look to key U.S. inflation gauge
The U.S. dollar was subdued on Tuesday as investors looked to U.S. inflation data due later in the week after softer-than-expected jobs data quelled expectations of an early tapering in the Federal Reserve's stimulus.
The euro fetched $1.21915 , bouncing back from its three-week low of $1.2104 set on Friday while the dollar eased to 109.26 yen , losing steam after having hit a two-month high of 110.325 late last week.
The dollar's index against a basket of six major currencies stood at 90.021, not far from 89.533, a 4 1/2-month low touched late last month.
10-year Treasury yield falls to 1.53% after trade deficit data
Treasury yields fell on Tuesday after showed U.S. trade deficit narrowed slightly from record levels as Covid-era demand for imports let up.
The yield on the benchmark 10-year Treasury note dropped roughly 4 basis points to 1.531%, while the yield on the 30-year Treasury bond also fell a similar amount to 2.211%. Yields move inversely to prices.
Many investors now expect the Fed to unveil a plan to reduce its bond purchase later this year, and actual tapering to start early next year.
Cryptocurrencies were also little moved.
Bitcoin traded flat at $33,564 , while ether stood at $2,581.
Reference: CNBC, Reuters
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