Dollar firms as U.S. yields rise, high British inflation underpins pound

The dollar index rose 0.108% due to rising Treasury yields. However, the pound gained against the greenback following British inflation staying at 10% in March. Investors' doubts over the possibility of a Fed rate cut later this year have led to a temporary strengthening of the dollar. While at the same time, the "risk off" mood helped the dollar during early trading, European and US stocks have struggled alongside non-yielding assets. With the UK having Western Europe's highest rate of consumer inflation, it is suggested that interest rates will remain high for longer in the UK and Europe.