NEW YORK: The dollar dipped slightly on Monday as traders awaited highly anticipated US inflation and retail sales data in coming days, and as Treasury yields held below recent highs before new supply.

The dollar’s performance has been tied to US Treasury yields for most of 2021, after concern about rising inflation in the United States and a stimulus-fuelled economic rebound triggered a jump in Treasury yields.

A fall in US yields last week triggered the worst week for the dollar in 2021. Yields edged higher on Monday before the Treasury will sell $120 billion in new coupon-bearing supply this week, though they are holding below one-year highs reached last month.

US consumer price data for March due on Tuesday is the next major economic focus. Investors are betting that price pressures will increase due to increased fiscal and monetary stimulus and as businesses reopen from COVID-19 related closures.

The dollar index was last down 0.11% against a basket of currencies at 92.108. It is holding above a three-week low of 91.995 reached on Thursday.

The euro gained 0.06% to $1.1908.

Bitcoin traded above $60,000, closing the gap to its record high.

Sterling rose 0.26% to $1.3744 as traders cheered the latest phase of the British government’s economic reopening plan.

The dollar fell 0.18% to 109.43 yen versus the Japanese currency.

US dollar net short positions have fallen to their lowest in nearly three years, according to data published on Friday.—Reuters