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The greenback experienced intense selling pressures in the past few hours over recent reports revealing inflation rate at the U.S economy posted record gains yet failed to change the U.S Federal Reserve’s stance on keeping interest rates at rock-bottom levels.

Data revealed that March inflation readings surpassed the U.S Federal Reserve target by 1.0%, largely attributed to the ongoing quantitative easing programs and strong rebound of economic activities as U.S. consumer prices rallied by the most in more than 8-1/2 years.

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The DXY index used in tracking the U.S dollar strength against major currencies was navigating below the 92.00 resistance area with investors shunning the greenback for Crypto assets and long-awaited listing of Coinbase, the world’s most valuable crypto exchange makes its debut on the Nasdaq today.

Dollar bears are pushing the greenback to a three-week low with recent data pointing to a well-telegraphed pattern on rising inflation, yet failed to change the US Federal Reserve’s status quo, and growing appetite for risk weighed deeply on the safe-haven currency.

Consequently, recent price actions suggest currency traders are deferring the Fed’s call on a delay in tightening monetary supply rather than sooner, hinting DXY bulls face an enormous task breaking above 92.0 in the near term as inflation fears assuages and treasury yields plunge.

However, currency traders remain upbeat about the world’s biggest economy thanks to the fast pace of COVID-19 vaccination rollouts which has helped in boosting social mobility, thereby pointing that DXY Bulls will hold comfortably hold the baseline around its yearly lows of 89.165 index points, without much difficulty.

Dollar bears will also keep an eye on the US exceptionalism theme that has helped the greenbacks upsides in early 2021 after some Fed officials indicated more of such data surprises could lead to bond tapering later in the year.

For a look at all of today’s economic events, check out our economic calendar.

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