Inflation measured by the CPI in the US accelerated in March.
Following the hot figures, the odds of a rate cut in June plummeted.
Hawkish bets on Fed, soaring US Treasury yields benefit USD.
The US Dollar Index (DXY) rallied to 105.20, up by nearly 1%, on Wednesday. The Greenback gained strength on hot inflation figures in the US Consumer Price Index (CPI) for March, which made markets start giving up hope for a June rate cut by the Federal Reserve (Fed).
Following a blockbuster labor market report and hot inflation figures for March, Fed officials may start signaling that they require additional evidence of the economy cooling down. In that sense, US Treasury yields may continue rising, which will benefit the USD.
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