Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dollar flat after more evidence of rising inflation

ForexMay 13, 2021 20:38
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: A packet of former U.S. President Abraham Lincoln five-dollar bill currency is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron/File Photo

By Kate Duguid and Karen Brettell

NEW YORK (Reuters) - The dollar held steady near week highs on Thursday after the U.S. Labor Department reported higher producer prices in April, further evidence that inflation is rising in the United States.

The producer price index rose 0.6% in April after surging 1.0% in March. In the 12 months through April, the PPI shot up 6.2%. That was the biggest year-on-year rise since the series was revamped in 2010 and followed a 4.2% jump in March.

Thursday's report follows data on Wednesday showing consumer prices increased by the most in nearly 12 years in April.

"The hotter-than-expected April U.S. PPI report did not have the impact Wednesday's huge CPI gains had on markets," said Ronald Simpson, managing director, global currency analysis at Action Economics in a report.

The dollar index was little changed on the day at 90.741.

The euro gained 0.05% to $1.2076. The greenback fell 0.26% to 109.48 Japanese yen.

Federal Reserve Governor Christopher Waller on Thursday said he expects inflation to exceed the Fed's 2% target for the next two years, but said the Fed would not raise rates until it sees inflation above target for a long time, or excessively high inflation.

Getting people off the sidelines of the economy and into jobs has become a critical issue in keeping the U.S. recovery on track, Richmond Fed President Thomas Barkin said Thursday.

U.S. Federal Reserve Vice Chair Richard Clarida said on Wednesday that weak job growth and strong inflation in April had not changed the central bank's plan to maintain loose monetary policy.

While the surge in inflation is large enough that a full reversal in coming months does not seem likely, a single month of data is unlikely to prompt an immediate shift in the Fed's positioning, wrote Alan Ruskin, macro strategist at Deutsche Bank (DE:DBKGn).

The Australian dollar, seen as a proxy for risk appetite, was up 0.02% at $0.7726 versus the U.S. dollar, after its biggest daily drop since March on Wednesday.

Bitcoin was lower a day after plunging 17% when Tesla boss Elon Musk said his company would stop accepting the digital tokens as payment for its cars.

It was last down 1.47% at $48,632.

Bitcoin is still higher than where it was just before Tesla said on Feb. 8 that it had invested around $1.5 billion in bitcoin and would accept it for payment in the near future.


Currency bid prices at 3:10PM (1910 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change


Dollar index 90.7410 90.7420 +0.01% 0.845% +90.9090 +90.5870

Euro/Dollar $1.2076 $1.2071 +0.05% -1.15% +$1.2106 +$1.2052

Dollar/Yen 109.4800 109.7050 -0.26% +5.94% +109.7750 +109.4150

Euro/Yen 132.21 132.40 -0.14% +4.17% +132.7300 +132.0500

Dollar/Swiss 0.9062 0.9089 -0.30% +2.43% +0.9092 +0.9053

Sterling/Dollar $1.4042 $1.4055 -0.06% +2.81% +$1.4077 +$1.4008

Dollar/Canadian 1.2163 1.2135 +0.23% -4.48% +1.2202 +1.2104

Aussie/Dollar $0.7726 $0.7726 +0.02% +0.45% +$0.7746 +$0.7688

Euro/Swiss 1.0941 1.0970 -0.26% +1.24% +1.0985 +1.0938

Euro/Sterling 0.8598 0.8588 +0.12% -3.79% +0.8617 +0.8585

NZ $0.7183 $0.7161 +0.33% +0.04% +$0.7194 +$0.7135


Dollar/Norway 8.3615 8.3430 +0.34% -2.52% +8.4195 +8.3335

Euro/Norway 10.1010 10.0668 +0.34% -3.51% +10.1556 +10.0675

Dollar/Sweden 8.4066 8.4239 -0.20% +2.56% +8.4549 +8.3922

Euro/Sweden 10.1519 10.1723 -0.20% +0.74% +10.1920 +10.1510

Dollar flat after more evidence of rising inflation

Related Articles

Bitcoin falls 7% to $35,431.15
Bitcoin falls 7% to $35,431.15 By Reuters - Jun 18, 2021

(Reuters) - Bitcoin dropped 7% to $35,431.15 at 20:02 GMT on Friday, losing $2,666.53 from its previous close. Bitcoin, the world's biggest and best-known cryptocurrency, is down...

Fed-fuelled dollar rises as bears make for exits
Fed-fuelled dollar rises as bears make for exits By Reuters - Jun 18, 2021

By Saqib Iqbal Ahmed and Julien Ponthus NEW YORK (Reuters) - The dollar extended its advance against a basket of currencies on Friday, building on the gains logged after the U.S....

Trust Dollar Rally for Now, But Bears Will Be Back
Trust Dollar Rally for Now, But Bears Will Be Back By - Jun 18, 2021

By Yasin Ebrahim – The dollar's sunny days are set to continue for quite a while, but the Fed's path will eventually turn murky again to bring the bears out of...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email