Dollar slips to three-week low as inflation fears seen baked in for now By Reuters – Investing.com

Dollar slips to three-week low as inflation fears seen baked in for now By Reuters – Investing.com

By Hideyuki Sano TOKYO (Reuters) - The dollar stood near three-week lows against the euro and the yen on Wednesday, after a larger-than-expected uptick in a U.S. consumer price gauge did not spark wider fears about accelerating inflation and the Federal Reserve's tapering. The dollar traded at 109.03 yen, near its lowest since late March, while the euro popped up to $1.1948, hitting its highest level since late March, as it extended a rally from a five-month low of $1.1704 set on March 31. While the dollar was stuck near its familiar ranges against most other currencies, the dollar's index against a basket of six major units hit a three-week low of 91.791 and last stood at 91.831. The greenback's fall came as the U.S. consumer price index jumped 0.6% in March versus the previous month, the largest gain since August 2012, and rose 2.6% from a year earlier, both 0.1 percentage point above market expectations. The core CPI, which excludes volatile foods and energy, was also a tad stronger than expected, with a year-on-year increase of 1.6%. "Inflation has been expected to accelerate in the April-June quarter. Although the latest reading was a bit stronger than expected, it