The dollar rose, supported by higher Treasury yields
The U.S. dollar held gains on May 13, supported by higher Treasury yields. Notably, a bigger-than-anticipated surge in U.S. consumer prices fanned doubts about an increase in inflationary pressure.
Traders will now turn attention to U.S. weekly jobless claims due later on Thursday and retail sales numbers on Friday to guide whether upward pressure on prices will continue.
According to analysts, the greenback is expected to continue to strengthen as some investors unwind bearish bets and re-position in anticipation of sustained inflation as more economies emerge from the coronavirus pandemic.
The U.S. dollar traded at 109.51 yen, close to its highest level in five weeks. Meanwhile, in the previous session, the dollar increased by 0.6% versus the euro and traded at $1.2084.
Meanwhile, the British sterling bought $1.4069. The greenback also traded at 0.9081 Swiss franc, near a one-week high. U.S. consumer prices rose by the most in almost 12 years in April.
Additionally, benchmark 10-year U.S. Treasury yields surged to a five-week high of 1.7040%, making dollar-denominated assets more attractive. The U.S. dollar index stood at 90.750, compared with Wednesday’s high of 90.798.
The risk-sensitive New Zealand dollar increased to $0.7175 after Prime Minister Jacinda Ardern announced she is exploring quarantine-free travel with other countries as she is finding ways for re-opening the economy.
The Australian dollar followed the New Zealand dollar higher and grew to $0.7735.
Meanwhile, the onshore yuan traded at 6.4525 per dollar, extending a pullback from a nearly three-year high hit on Monday as overseas-listed Chinese firms bought greenbacks for dividend payments.
Bitcoin fell as Tesla stops accepting the cryptocurrency for car purchases
In the cryptocurrency market, Bitcoin declined by 17% when Elon Musk announced Tesla stops accepting the cryptocurrency for car purchases.
The dominant cryptocurrency fell from about $54,819 to $45,700, its lowest since March 1. However, it recovered overnight and rose by 0.5% at around $49,697.
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