TOKYO- The dollar nursed losses against most currencies on Thursday after benign data on US consumer price data and a decline in Treasury yields led some investors to trim bets on a rapid acceleration in inflation.
The euro was in focus ahead of a European Central Bank meeting later on Thursday where policymakers are expected to send a message that they will prevent bond yields from rising further and harming the bloc’s economic outlook.
Sentiment for the dollar remains fairly positive as the US economy is recovering from the coronavirus pandemic and President Joe Biden’s $1.9 trillion stimulus bill has won final approval in Congress, so any further declines in the dollar are likely temporary.
“The reflation trade looks set to continue,” said Junichi Ishikawa, senior foreign exchange strategist at IG Securities.
“The dollar is the dominant theme in the currency market, and this is just a temporary pause in its uptrend.”
Against the euro, the dollar was quoted at $1.1928, nursing a 0.2 percent loss from the previous session.