Dollar Trades Near Its 3-Weak Low Ahead Of Inflation Data

Dollar Trades Near Its 3-Weak Low Ahead Of Inflation Data

13 Apr 2021 07:40 AM

The USDINR NDF is currently trading at 75.01/02.

The dollar index traded near a three-week low against major rivals on Tuesday, pressured by lower Treasury yields as traders awaited highly anticipated U.S. inflation data later in the global day.

The greenback has retraced along with U.S. yields this month after peaking to multi-month peaks on expectations that massive fiscal stimulus coupled with continued monetary easing will spur faster U.S. economic growth and higher inflation. The benchmark yield was at 1.6764% on Tuesday. It had surged to a more than one-year high of 1.7760% on March 30.

New supply is also a driver of yield direction this week, with the Treasury selling 30-year bonds on Tuesday, following good demand at auctions of three- and 10-year notes on Monday.

Trends on SGX Nifty indicate a flat start for the broader index in India. The Nifty futures were trading flat around 14,353 level on the Singaporean Exchange.

Brent crude oil futures were up 9 cents, or 0.1%, at $63.37 a barrel while U.S. crude oil futures gained 11 cents, or 0.2%, to $59.81 a barrel.