The US currency initially fell across the board after the inflation report, but recovered when Treasury yields also rose.
“This morning’s inflation data wasn’t as bad as some feared, so we did see a bit of a relief pick-up in risk-sensitive currencies on the back of the numbers, but it wasn’t enough to reverse expectations of further (monetary) tightening either. in the coming months,” said Karl Schamotta, chief market strategist at Corpay in Toronto.
“Core prices continue to rise at an uncomfortable pace, making (Fed Chairman) Jerome Powell’s ‘higher longer’ message seem more persuasive.”Schamotta added.
In afternoon trade, the dollar was up 0.5% against the yen at 132.41 yen, after reaching a six-week high of 133,305 yen.
The dollar index, which measures the greenback against a basket of major currencies, held steady at 103.21. It fell to 102.50, its lowest level since February 3.
The euro was up 0.1% at $1.0737, having hit a nearly two-week high of $1.0805 after the data was released.
Source: Ambito
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