Dollar hits one-week lows due to weak inflation data
The dollar fell near one-week lows on Thursday after weak U.S. consumer prices data and a drop in Treasury yields prompted a sell-off in the market.
The dollar index was flat at 91.79 after hitting a one-week low of 91.75 in Asian trade as data showed that U.S. core consumer price growth briefly slowed in February.
Against the euro, the dollar stood at $1.1932 after losing 0.2% in the last session. The greenback bought 0.9299 Swiss franc, another safe haven.
The dollar and U.S. Treasury yields have been climbing steadily in hopes that the Fed’s dovish monetary policy and fiscal stimulus will stir inflation. The 10-year Treasury yield stood at 1.528% on Thursday after reaching a one-year high of 1.626% last week.
The British pound traded at $1.3935 after gaining 0.3% on Wednesday. Against the dollar, the Japanese yen slid nearly 0.2% to 108.55.
Elsewhere, the Aussie and kiwi dollars climbed for the third straight day against the dollar as sentiment towards antipodean currencies remained strong.