XE Market Analysis: Asia – May 12, 2021

The DXY ran up to highs of the week at 90.65 from near 90.30 in the immediate aftermath of the hot CPI outcome, though quickly fell back to intra day lows of 90.17. Treasury yields eventually headed higher from the initial knee-jerk moves, which ultimately supported the USD overall. The Dollar index later topped at highs of the week toward 90.80. Bigger picture however, zero U.S. interest rates for as far as the eye can see, along with galloping inflation will likely become a recipe for Dollar erosion.