Dollar Rises ahead of US Inflation Data

The dollar rose on Wednesday on rising expectations the Federal Reserve is unlikely to cut rates until later this year ahead of crucial inflation readings this week, while the yen drifted to its weakest in four weeks. The dollar was also lifted by rising Treasury yields after a lackluster debt auction for sales of two-year and five-year notes that raised doubts about demand for US government debt. Against a basket of currencies, the dollar index rose 104.7, inching away from the near two-week low of 104.33 it touched on Tuesday. The euro was 0.09% lower at $1.0848 but on course for a 1.7% gain for the month, its first month of gains in 2024. Sterling was last at $1.27525, on course for a 2% gain in May. The Australian dollar was little changed at $0.66485 after Australian consumer price inflation unexpectedly rose to a five-month high in April, adding to risks the next move in interest rates might be upward. Meanwhile, the yen touched a four-week low of 157.41 per dollar early on Wednesday. Source: Qa tar News Agency