US dollar under pressure, euro steady

Business | 11 Jun 2021 9:47 am

After a week of anxious waiting, markets got the high U.S. inflation number they dreaded, shrugged it off and moved on - leaving the U.S. dollar under pressure and most majors stuck in ranges, Reuters reports.

Early in the Asia session the greenback nursed small losses, as traders figured there were enough one-offs in last month's 0.6 percent rise in consumer prices to support the Federal Reserve's insistence that inflation was likely to be transitory.

The dollar bought 109.37 yen and was headed for a small weekly loss. It was also on track for modest weekly losses on the Aussie dollar and British pound, last trading at US$0.7748 per Aussie and US$1.4171 per pound.

A dovish commitment from the European Central Bank to stick with its elevated tempo of bond buying held the euro in check at US$1.2175.

"What we're seeing is a market that believes in the Fed," said Chris Weston, head of research at broker Pepperstone in Melbourne, as investors temper worries that the strong recovery in the United States prompts early rate hikes. "We're going to get tapering," he said. "But it's going to get done a such a snail's pace."


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