FOREX-Dollar drops to three-week lows after inflation data

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

(Adds quote, context, updates prices; changes dateline,
previous LONDON, byline)
By Karen Brettell
NEW YORK, April 13 (Reuters) - The U.S. dollar fell to
three-week lows on Tuesday after data showed inflation making
strong gains in March, though the rise was not expected to alter
the Federal Reserve's commitment to keeping interest rates at
rock-bottom levels for years to come.
The consumer price index jumped 0.6% last month, the largest
gain since August 2012, after rising 0.4% in February, the Labor
Department said on Tuesday. Excluding the volatile food and
energy components, the CPI rose 0.3%. The so-called core CPI
nudged up 0.1% in February. The dollar briefly spiked on the data, before reversing
course and dipping to three-week lows. Treasury yields also fell
after the data. US/
"It keeps unchanged the outlook of the Fed to stay the low
rate course over the foreseeable future," said Joe Manimbo,
senior market analyst at Western Union Business Solutions in
Washington D.C. "We're likely to see inflation move higher,
before it eventually moves lower. So far the economy is sticking
to the Fed's script."
Inflation is expected to show extra bullish comparisons to
last year in the coming months due to a drop in price pressures
in 2020 when businesses closed due to the spread of COVID-19.
The U.S. central bank has said that it will look through
temporary increases in inflation and analysts expect it will
allow inflation to run hotter than previously expected before
raising rates.
The next major U.S. economic release will be retail sales
data for March on Thursday.
The dollar index =USD fell as low as 91.93, the lowest
level since March 23. The euro EUR=EBS gained 0.24% to
$1.1940. The greenback fell 0.22% to 109.16 Japanese yen
JPY=D3 .
The Australian dollar AUD=D3 , which is a proxy for global
risk appetite, was little changed on the day at $0.7623.
The New Zealand dollar NZD=D3 gained 0.20% to $0.7042. The
country's central bank is expected on Wednesday to leave
interest rates and its quantitative easing program unchanged.
Bitcoin BTC=BTSP hit a record $63,275, extending its 2021
rally to new heights a day before the listing of Coinbase shares
in the United States. ========================================================
Currency bid prices at 9:38AM (1338 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 91.9200 92.0910 -0.16% 2.155% +92.3400 +91.9370
Euro/Dollar EUR=EBS $1.1940 $1.1912 +0.24% -2.28% +$1.1940 +$1.1878
Dollar/Yen JPY=D3 109.1600 109.4250 -0.22% +5.71% +109.7450 +109.1250
Euro/Yen EURJPY= 130.33 130.26 +0.05% +2.69% +130.4900 +129.8100
Dollar/Swiss CHF=EBS 0.9208 0.9222 -0.13% +4.10% +0.9259 +0.9209
Sterling/Dollar GBP=D3 $1.3738 $1.3747 -0.05% +0.56% +$1.3768 +$1.3697
Dollar/Canadian CAD=D3 1.2560 1.2564 -0.03% -1.36% +1.2628 +1.2530
Aussie/Dollar AUD=D3 $0.7623 $0.7623 +0.02% -0.88% +$0.7630 +$0.7585
Euro/Swiss EURCHF= 1.0995 1.0986 +0.08% +1.75% +1.1013 +1.0985
Euro/Sterling EURGBP= 0.8689 0.8669 +0.23% -2.76% +0.8712 +0.8641
NZ NZD=D3 $0.7042 $0.7028 +0.20% -1.94% +$0.7043 +$0.7005
Dollar/Dollar
Dollar/Norway NOK=D3 8.5095 8.4800 +0.48% -0.77% +8.5660 +8.4865
Euro/Norway EURNOK= 10.1621 10.1037 +0.58% -2.91% +10.1855 +10.0976
Dollar/Sweden SEK= 8.5404 8.5606 -0.07% +4.20% +8.5964 +8.5421
Euro/Sweden EURSEK= 10.1979 10.2050 -0.07% +1.21% +10.2188 +10.1811