Dollar rallies on upbeat US inflation data and jump in yields

The greenback rose across the board on Wednesday as the release of upbeat U.S. inflation data alleviated concerns about the country's economic recovery together with a jump in U.S. Treasury yields.  
  
Reuters reported U.S. consumer prices increased more than expected as booming demand amid a reopening economy pushed against supply constraints, which could fuel financial market fears of a lengthy period of higher inflation.    The consumer price index jumped 0.8% last month after rising 0.6% in March, the Labor Department said on Wednesday. Excluding the volatile food and energy components, the CPI soared 0.9%. The so-called core CPI rose 0.3% in March.    Economists polled by Reuters had forecast the overall CPI climbing 0.2% and the core CPI rising 0.3%.  
  
Versus the Japanese yen, dollar initially rebounded from 108.58 in Australia to 108.90 in Asia and despite retreating to 108.67 in Europe, the pair then rallied to 109.70 near New York close due to upbeat U.S. inflation data as well as rise in U.S. Treasury yields.  
  
The single currency went through a volatile session. Price retreated from 1.2150 in Australia to 1.2116 in Asia and then recovered to 1.2143 in European morning. The pair then fell to 1.2071 at New York open after release of upbeat U.S. inflation data before rising to session highs of 1.2152. However, price then dropped again to session lows of 1.2066 due to rally in U.S. Treasury yields and then moved sideways.  
  
The British pound also went through a hectic session. Cable retreated from 1.4148 in Australia to 1.4108 in Asia before rebounding to 1.4148 again in European morning. The pair then fell to 1.4080 at New York open on upbeat U.S. inflation data before rise to session highs of 1.4154 (Reuters). However, price then tumbled to 1.4050 near New York close on rally in U.S. Treasury yields.  

Data to be released on Thursday:  

New Zealand retail sales, Australia Westpac consumer sentiment, Japan coincident index, leading indicator, Germany CPI, HICP, U.K. GDP, industrial output, manufacturing output, construction output, trade balance, GDP, NIESR GDP, France CPI, EU industrial production, US MBA mortgage, CPI, Federal budget.