Currencies Overview: Dollar Rises From Nearly Three-week Low as Trader Brace For Inflation Data

The dollar rose from a nearly three-week low against the major rivals on Tuesday, buoyed by a surge in US Treasury bond yields, as investors awaited closely watched US inflation data, which is scheduled for release later on Tuesday.

The dollar had retreated, as did US bond yields this month, after rising to a multi-month high, supported by expectations that massive fiscal stimulus coupled with continued monetary easing would stimulate faster economic growth in the United States, boosting inflation.

The dollar index rose 0.2% to 92.281 in the Asian trading session, moving away from the low it reached on Thursday at 91.995, which was the lowest since March 23. It had climbed to a peak of nearly five months at 93.439 in the last day of March.

The yield on record US Treasury bonds rose nearly two basis points to 1.6926% on Tuesday, but are still trading at well below the 1.7760% level reached on March 30, which was the highest in more than a year.

Against the euro, the dollar rose 0.2% on Tuesday to $1.18890.

The greenback rose 0.3$ to 109.73 yen after dropping below the 109 level last week for the first time since March 25.

The Australian dollar fell 0.3$ to $ 0.75990, while the British pound fell 0.1% to $1.37305.

In terms of cryptocurrencies, Bitcoin rose slightly to 60,369.01 dollars, to be closer to its highest levels ever at 61 thousand and 781.83 dollars, which it reached a month ago.