By Deborah Levine
NEW YORK (MarketWatch) -- The dollar fell further and Treasury prices held onto gains on Tuesday after data showing U.S. import prices rose more than expected and the trade deficit narrowed less than analysts forecast. The dollar index (DXY 74.76, -0.29, -0.39%) , a measure of the U.S. unit against a basket of six other currencies, traded at 74.754, down from 74.989 in late North American trading on Monday. The euro (EURUSD 1.4511, +0.0080, +0.5544%) rose to $1.4509, versus $1.4445 Monday, and the dollar fell about 0.6% versus the Japanese yen (USDYEN 84.1200, -0.5400, -0.6378%) . Yields on 10-year notes (UST10Y 3.52, -0.07, -2.01%) , which move inversely to prices, fell 7 basis points to 3.52%. U.S. bonds were in demand before the data as the situation with Japan's nuclear plant got worse. Strategists at RBS Securities said "Treasurys rallied in Tokyo as Japan upgrades the accident rating to 7," in regards to its nuclear power plant that's been leaking radiation since the massive earthquake and tsunami nearly a month ago.
