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29/05/24
251
USD Flat Before Inflation Data
On Wednesday, the dollar was firm, boosted by higher U.S. yields before key inflation data later this week.
The US dollar rose to as high as 157.41 yen early today, as the Japanese currency inched down to levels seen at the end of April and early May that resulted in bouts of likely intervention from Tokyo. It is, however, increasing at a much slower rate than it did last month.
The dollar was last at about 157.275 yen, up 0.06% for the day.
This month’s U.S. consumer price inflation data was slightly softer, and this generally weakened the dollar. Since then, however, U.S. Treasury yields have resumed climbing, and benchmark 10-year yields hit 4.57%, the highest level in nearly four weeks.
Tuesday’s lackluster auction of 2-year and 5-year notes increased doubts about demand for U.S. government debt, and data showed that U.S. consumer confidence in May improved unexpectedly. These factors drove the yields higher.
The U.S. dollar index, which measures its strength against 6 other major currencies, was at about 104.83, 0.16% higher. The Federal Reserve’s preferred measure of inflation, the U.S. core personal consumption expenditures (PCE) price index report, is due for release on Friday. Expectations are for it to stay steady on a monthly basis.
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