Early trade in New York: Dollar jumps against basket of currencies

NEW YORK: The US dollar jumped against a basket of currencies on Tuesday after data showed US inflation data for June coming in hotter than expected, raising the prospect that inflationary concerns are set to linger.

US consumer prices rose by the most in 13 years in June amid supply constraints and a continued rebound in the costs of travel-related services from pandemic-depressed levels as the economic recovery gathered momentum.

The dollar index, which measures the greenback against a basket of six currencies, was 0.41% higher at 92.6, its highest since July 8. The index is just shy of the three-month high of 92.844 touched last week.

Sterling fell lower on Tuesday after the Bank of England scrapped pandemic-era curbs on dividend payments by banks but warned some asset prices look stretched.

The pound was last down 0.48% against the dollar, with the bulk of the day’s losses coming after the release of the US CPI data.

Cryptocurrencies remained on the back foot on Tuesday, with bitcoin down about 1.75% at a four-day low of $32,525.06, as investors shed riskier assets following US inflation data.