The super dollar rose boosted by US Treasuries

He dollar It was appreciated this Wednesday, April 19powered by rising US Treasury yieldsand the pound rose after data showing British inflation held above 10% in March, putting more pressure on the Bank of England to raise rates.

The dollar index, which measures the currency’s performance against a basket of six currencies, rose 0.3% as there were more doubts in the markets that there would be rate cuts in the United States at the end of the year.

Two-year Treasury yields, highly sensitive to Federal Reserve rate expectations, rose 7 basis points to 4.269%, after rising to a one-month high of 4.286%.

However, the dollar’s rise was a “temporary respite,” said Bipan Rai, head of North American currency strategy at CIBC Capital Markets in Toronto.

“We continue to think that over the medium to long term, the dollar will continue to come under considerable pressure. And that’s tied to our view that the Fed will probably hike one more time and that’s it.” * Futures prices show an 85.7% chance the Fed will raise rates 25 basis points by the close of a two-day meeting on May 3, according to CME’s FedWatch tool.

However, the probability of a December rate cut has been reduced considerably this week.

Data on Wednesday showed British consumer price inflation fell less than expected in March, to 10.1% from 10.4% in February, meaning the UK has the fastest consumer inflation rate. Western European high.

Sterling rose 0.13% to $1.2344, outperforming other currencies, on expectations that the Bank of England may have to raise rates further to reduce inflation.

The dollar rose 0.46% against the interest rate-sensitive Japanese yen to 134.82 per dollar, after briefly topping 135 for the first time in a month, while the euro fell 0. .15% to $1.0958.