Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Down to Near Three-Week Lows as Inflation Fears Assuaged for Now

ForexApr 14, 2021 01:02AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – The dollar was down on Wednesday morning in Asia to a near three-week low against the euro and the yen, thanks to a larger-than-expected rise in the U.S. consumer price gauge.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies edged down 0.12% to 91.735 by 12:51 AM ET (4:51 AM GMT).

The USD/JPY pair edged down 0.14% to 108.90.

The AUD/USD pair up 0.38% to 0.7667. The NZD/USD pair gained 0.58% to 0.7092 after the Reserve Bank of New Zealand left interest rates unchanged at 0.25% in its decision handed down earlier today.

The USD/CNY pair inched down 0.05% to 6.5400 and the GBP/USD pair was up 0.22% to 1.3778.

The U.S. core consumer price index (CPI) rose 0.3% month-on-month in March, against the 0.2% growth in forecasts and February’s 0.1% growth, data released on Tuesday said. The CPI grew 0.6% month-on-month, its largest gain since August 2012.

The rise was not a surprise to some investors, however.

"Inflation has been expected to accelerate in the April-June quarter. Although the latest reading was a bit stronger than expected, it wasn't out of the blue," Mizuho Securities chief currency strategist Masafumi Yamamoto told Reuters.

The U.S. Federal Reserve has said that it will look through temporary increases in inflation, with investors expecting that the central bank will allow inflation to run higher than previously thought before it raises rates.

Philadelphia Fed Bank President Patrick Harker said on Tuesday it is unlikely that inflation will run out of control in 2021, however. Investors now await further comment from Fed Chairman Jerome Powell at an Economic Club of Washington event and the release of the Fed’s Beige Book, both taking place later today.

Still, investors remain wary that the U.S. economy will accelerate further, thanks to the fast pace of COVID-19 vaccination rollouts which has allowed economic activities to resume.

"Eventually there will be another large-scale fiscal stimulus, which should support the dollar," Mizuho's Yamamoto added.

U.S. bond yields dipped on Tuesday after an auction for 30-year bonds attracted solid demand, thus tapering down inflation worries.

The Russian rouble rose around 2% during the previous session after U.S. President Joe Biden appealed to Russian President Vladimir Putin to reduce Russia-Ukraine tensions during a phone call.

In cryptocurrencies, bitcoin traded at $63,287 after hitting a record high of $63,769 and the Nasdaq set a reference price of $250 for the direct listing of cryptocurrency exchange Coinbase Global Inc. that starts trading later in the day.

Dollar Down to Near Three-Week Lows as Inflation Fears Assuaged for Now
 

Related Articles

Dollar flat after more evidence of rising inflation
Dollar flat after more evidence of rising inflation By Reuters - May 13, 2021 6

By Kate Duguid and Karen Brettell NEW YORK (Reuters) - The dollar held steady near week highs on Thursday after the U.S. Labor Department reported higher producer prices in April,...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email