TOKYO- The dollar fell to multi-week lows against the euro and the yen on Wednesday, after an uptick in a US consumer price gauge did not spark wider fears about accelerating inflation and the Federal Reserve’s tapering, pushing down US bond yields.
The dollar ticked down 0.2 percent to 108.80 yen, touching its lowest level in three weeks, down about 2 percent from a one-year peak hit at the end of last month.
The euro popped up 0.1 percent to $1.1960, hitting its highest level since mid-March, as it extended a rally from a five-month low of $1.1704 set on March 31.
Against the Swiss franc, the US currency slipped to 0.9201 franc, near its lowest levels in six weeks.
While the dollar was stuck near its familiar ranges against most other currencies, the dollar’s index against a basket of six major units fell to as low as 91.724, its lowest since March 22.
The greenback’s fall came as US bond yields dipped, thus reducing the currency’s yield attraction, as solid demand for a 30-year bond auction trumped rises in consumer inflation.
The 10-year US Treasuries yield dipped to 1.620 percent, also its lowest levels since late March.
The US consumer price index jumped 0.6 percent in March versus the previous month, the largest gain since August 2012, and rose 2.6 percent from a year earlier, both 0.1 percentage point above market expectations.
The core CPI, which excludes volatile foods and energy, was also a tad stronger than expected, with a year-on-year increase of 1.6 percent. – Reuters
