June 20, 2021
Economy

US dollar floats near key level

It was a volatile week for both the currencies and equities. Equities tumbled during the week but have managed to recover in the later part. The US dollar index and the treasury yields rose sharply after the strong inflation data release on Tuesday. But they failed to retain the strength and declined by the end of the week. Inflation in the US surged in April.

Data released on Tuesday last week showed the US Headline Consumer Price Index (CP) Inflation rising sharply to 4.1 per cent (Year-on-Year) in April from 2.64 per cent in March. The Core CPI surged to 2.96 per cent (YoY) in April from 1.65 per cent in the previous month. Strong inflation numbers triggered a sharp rise in the US treasury yields and in turn took the dollar index higher. The US 10-year treasury yield rose sharply from near 1.60 per cent to make high of 1.70 per cent and the dollar index rose to a high of 90.91…

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