Home Business News The dollar fell to nearly three-week levels on inflation fears now warranted...

The dollar fell to nearly three-week levels on inflation fears now warranted by Investing.com

© Reuters.

By Gina Lee

Investment.com – The dollar fell on Wednesday morning in Asia to a nearly three-week low against the euro and yen, thanks to a larger-than-expected increase in US consumer prices.

Tracking the greenback against a basket of other currencies dropped 0.12% to 91,735 at 12:51 AM ET (4:51 AM GMT).

This pair is down 0.14% to 108.90.

This pair is up 0.38% to 0.7667. The pair gained 0.58% to 0.7092 after the Reserve Bank of New Zealand kept interest rates unchanged at 0.25% in early trading today.

The pair fell 0.05% to 6,5400 and rose 0.22% to 1.3778.

The US rose 0.3 percent from the previous month in March, compared with 0.2 percent growth in forecast and February’s 0.1 percent growth, data released Tuesday said. The increase was 0.6% MoM, the biggest increase since August 2012.

However, the increase should not come as a surprise for some investors.

Mizuho Securities’ currency strategist Masafumi Yamamoto told Reuters: “Inflation is expected to accelerate in the 4-6 quarter.

The US Federal Reserve said it would consider temporary inflation increases, with investors expecting that the central bank will allow inflation to rise above previously thought before raising interest rates.

However, Philadelphia Fed President Patrick Harker said on Tuesday that inflation will get out of control by 2021. Investors are now waiting for further comment from Fed Chairman Jerome Powell at an event. of the Economic Club in Washington and the announcement of the Fed, both later today.

However, investors remain wary that the US economy will accelerate further, thanks to the rapid pace of COVID-19 vaccination rollout that has allowed economic activity to resume.

Mizuho’s Yamamoto added: “There will eventually be another large-scale fiscal stimulus, supporting the dollar.

U.S. bond yields fell on Tuesday after a 30-year bond auction attracted solid demand, thereby alleviating inflation worries.

The Russian ruble rose about 2% in the previous session after US President Joe Biden called on Russian President Vladimir Putin to relieve Russia-Ukraine tensions in a phone call.

In terms of cryptocurrencies, bitcoin was trading 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 crypto exchange Coinbase Global Inc. Start trading at the end of the day.

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