The dollar rose, helped by a surge in U.S.Treasury yields
The U.S. dollar increased on April 13, helped by a surge in U.S.Treasury yields. However, the currency was still close to three-week lows as markets waited for inflation data in America. The greenback has dipped so far in April, after rising in the first three months of the year on expectations that a combination of monetary stimulus and government spending would cause inflation to spike.
U.S. CPI data for March is due at 1230 GMT and is likely to show an increase in inflation to 2.4%.
ING strategists announced higher inflation would support higher U.S. yields. This could, in turn, cause the greenback to outperform lower-yielding currencies, including the yen, Swiss franc, and euro.
On Tuesday, the greenback boosted 0.1% versus a basket of currencies, at 92.201, moving away from recent three-week lows. The 10-year U.S. Treasury yield stood at 1.6979% for its third consecutive day of gains. However, it was still well below the 1.7760% level from March 30, which was the highest in over a year.
The Australian dollar fell 0.2%, the pound rose by 0.1%
According to Jim Rid, Deutsche Bank strategist, there’s a widespread expectation that inflation is set to increase in the following months.
Overnight data suggest China’s exports surge in March, with import growth climbing to four-year highs, signaling an improvement in global demand.
By early London trading, China’s offshore yuan fell 0.1% versus the dollar, changing hands at 6.5523. The euro dipped 0.1% at $1.1895.
Risk-sensitive currency, the Australian dollar, declined by 0.2% against the U.S. dollar at 0.7609. On Monday, Australia abandoned its goal to vaccinate almost all its population by the end of the year.
Notably, New Zealand is due to meet on Wednesday and is anticipated to keep rates constant. The British sterling gained 0.1% versus the greenback at $1.3763. According to gross domestic product data, the U.K. economy expanded in February as companies prepared for the lifting of the third COVID-19 lockdown.
The world’s largest cryptocurrency price, Bitcoin, gained 1.6% and settled at $60,807.77, ahead of Coinbase Global Inc.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.