The dollar fell today after US inflation data showed that consumer prices rose 8.5 percent in March on an annual basis, supported by the rise in the price of gasoline, but the decline in the prices of used cars and trucks limited those increases.
While the preliminary reading was slightly higher than analysts had expected, as the US Consumer Price Index recorded the largest monthly rise in 40 years, the data showed some indications that inflation may have peaked. The core consumer price index was less than estimated, falling to 6.5 percent, according to “Archyde.com”.
“There are a lot of positives to suggest that some of these price spikes could start to roll back,” said Edward Moya, senior market analyst at Wanda.
He added that this may indicate that the Federal Reserve (the US central bank) may not need to exaggerate monetary tightening in the second half of this year.
The dollar index fell 0.146 percent, and the euro fell 0.02 percent to 1.0881 dollars.
US 10-year Treasury yields fell slightly to 2.7099 percent, after reaching 2.793 percent on Monday, the highest level since January 2019.
Despite the decline in the euro, today, Tuesday, it regained some of its gains after the French elections, and it had risen the previous day to $1.09550 due to news that incumbent President Emmanuel Macron had defeated his far-right rival Marine Le Pen in the first round of the presidential election.