Dollar tumbles on selloff in US yields and stocks

The greenback fell across the board on Thursday as a selloff in U.S. Treasury yields and U.S. stocks triggered broad-based selling in usd.  
  
Reuters reported the Federal Reserve is not targeting equity markets in its battle against inflation but that is "one of the avenues" where the impact of tighter monetary policy will be felt, Kansas City Fed president Esther George said Thursday in comments to CNBC. "What we are looking for is the transmission of our policy through markets understanding that tightening should be expected," George said a day after weak profits from major retailers contributed to a sell-off of stocks. "It is not aimed at the equity markets in particular but it is one of the avenues through which tighter financial conditions would emerge."  
  
Versus the Japanese yen, despite staging a strong rebound fm 127.90 to session highs at 128.94 in Asia, dollar met renewed selling and tumbled to an intra-day low at 127.04 in New York on continued risk-averse buying in jpy due to another selloff in global stocks before staging a short-covering rebound in tandem with U.S. yields.  
  
The single currency staged a short-covering rebound to 1.05067 in Asia before retreating to 1.0466 in early European morning. The pair then jumped in European morning and rose to a 3-week peak at 1.0608 in New York midday on usd's broad-based weakness.  
  
More from Reuters European Central Bank policymakers expressed widespread concern about the spread of inflation and made the case for continued policy normalisation, the accounts of their April 14 meeting showed on Thursday.  With inflation soaring to a record high 7.4%, the ECB confirmed plans at the meeting to end a bond purchase scheme in the third quarter but maintained an otherwise non-committal tone, avoiding any other pledges, including on interest rates, which remain deeply negative. "Members widely expressed concern over the high inflation numbers," the ECB said in the accounts of the meeting. "Members widely shared the view that the gradual normalisation of the monetary policy stance... should be continued." "Some members viewed it as important to act without undue delay," the ECB added. "A risk was also seen that, if the Governing Council did not signal a faster policy normalisation process, inflation expectations would continue to rise."  
  
The British pound rebounded to 1.2395 in Asia before retreating to 1.2339 in early European morning. Cable then rallied in tandem with euro in Europe and hit a near 2-week high at 1.2524 in New York on broad-based retreat in usd together with cross-buying of sterling especially vs euro.  
  
Data to be released on Friday:  
  
New Zealand imports, trade balance, exports, U.K. Gfk consumer confidence, PSNB, retail sales, Japan nationwide CPI, Germany producer prices and Swiss industrial production.