BLBG: Dollar Drops to Near Four-Month Low on Outlook for Inflation
The dollar declined to near the lowest level against the euro since January as an increase in Treasury yields and gold prices indicated inflation may accelerate.
The spread between yields on 10-year notes and Treasury Inflation Protected Securities, reflecting the outlook among traders for consumer prices, reached 1.73 percentage points, the highest level since September.
“The general move is dollar-negative,” said Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto. “Inflation is becoming more of a concern. Gold is doing well.”
The dollar dropped 0.2 percent to $1.3814 per euro at 12:14 p.m. in New York, from $1.3780 yesterday. The U.S. currency traded at 94.91 yen, compared with 94.88. The euro increased 0.3 percent to 131.10 yen from 130.77.
