The U.S. dollar hovered near its lowest levels of the year in Asian Market opening trades today, as traders hung on to bets that the Federal Reserve would remain steadfast in its easy policy settings ahead of data expected to show a sharp rise in annual U.S. inflation. Analysts forecast figures due later today to show a 3.6% lift in year-on-year prices, boosted by last April\'s low base. The month-on-month forecast is for a modest 0.2% rise. Higher numbers might add pressure on the Fed to bring forward rate rises, a worry which has contributed to a selloff in rate-sensitive tech shares this week. But currency markets have been soothed by repeated promises of patience from Fed speakers and the dollar has been pressured by gains in commodity currencies. The greenback touched its weakest in two months against the euro overnight, following a strong European growth survey, and is currently trading at $1.2123 while the yen fell marginally to 108.83 per dollar. Sterling hung on to recent gains to trade at $1.4113. Sentiment helped the dollar index a fraction higher to 90.34 as selling pressure persisted in stock markets. As long as the equity market does not experience a more drastic correction, the dollar is unlikely to get a safe-haven bid. We know now that the Fed is very much firmly committed to easy policy. The Indian Rupee opened weaker with a gap of 16 paise at 73.50/51 against its previous session’s close of 73.34/35 and is expected to trade in a range between 73.30 – 73.70 today.
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