WASHINGTON (dpa-AFX) - The U.S. dollar pared early gains and lost ground against is major rivals in the European session on Tuesday, but rebounded swiftly and moved well past the flat line subsequently.
The dollar shed gains after data showed U.S. inflation rose less-than-expected in March, easing concerns over a more aggressive tightening of monetary policy by the Federal Reserve.
The data showed that core consumer prices, which exclude food and energy prices, edged up by 0.3% in March after rising by 0.5% in February. Economists had expected another 0.5% increase.
The consumer price index surged by 1.2 percent in March after climbing by 0.8% in February. The sharp increase in consumer prices matched economist estimates.
The annual rate of consumer price growth accelerated to 8.5% in March from 7.9% in February, showing the fastest growth since December 1981.
Core consumer prices were up 6.5% year-over-year in March, reflecting an uptick from the 6.4% jump in February. The annual growth represents the biggest increase since August 1982.
The dollar index, which dropped to 99.74 soon after the release of the inflation data, recovered swiftly and climbed to 100.33 later in the afternoon, gaining about 0.4%.
Against the Euro, the dollar firmed to $1.0831 from $1.0886. Survey results from the ZEW - Leibniz Centre for European Economic Research showed that German economic confidence weakened further in April but at a slower-than-expected pace.
The ZEW Indicator of Economic Sentiment fell to -41.0 in April from -39.3 in March. However, economists had forecast the index to decline more sharply to -48.0.
The dollar is trading at $1.3000 against Pound Sterling, gaining from $1.3028.
Data from the Office for National Statistics showed that the UK unemployment declined in three months to February and job vacancies rose to a new record high.
The jobless rate fell 0.2 percent points from the previous quarter to 3.8% in three months to February.
The Japanese currency is up slightly against the dollar at 125.34 yen, compared with Monday's close of 125.39 yen.
Against the Aussie, the dollar is at 0.7453, drifting down from 0.7416, after data showed Australia business conditions and confidence improved in March.
The Swiss franc is at 0.9325 a dollar, losing ground from 0.9313.
The Loonie is trading at C$1.2646 a dollar, weakening from C$1.2634 a dollar, ahead of the Bank of Canada's interest rate decision, due tomorrow.
Copyright(c) 2022 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2022 AFX News
