BRUSSELS (Alliance News) - The US dollar erased its early losses against its major opponents on Tuesday, following the release of a report showing a modest uptick in consumer prices in the month of February. According to a report released by the Labor Department, the consumer prices edged up by 0.2% in February after tumbling by 0.7% in January. The modest increase by the index matched the consensus estimate. Core consumer prices, which exclude food and energy prices, also rose by 0.2% for the second consecutive month. Economists had expected core prices to inch up by 0.1%. An improvement in consumer price inflation may trigger a rate hike by mid-2015, as the Fed stated last week that it seeks further improvement in labour market and a pick up in inflation towards its 2% objective before normalising rates. The greenback rebounded to 0.9600 against the franc, off early new 3-week low of 0.9535. The greenback is likely to eye resistance around the 0.98 zone. The greenback, which fell to near a 4-week low of 119.21 versus the yen and a 6-day low of 1.1028 against the euro in early deals, bounced off to 119.53 and 1.0934, respectively. If the greenback extends rise, it may locate resistance around 120.00 against the yen and 1.08 against the euro. The greenback was trading higher at 1.4876 against the pound, reversing from its previous low of 1.4983. The next possible resistance for the greenback is seen around the 1.46 mark.

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