* Chart: Global exchange rates https://tmsnrt.rs/2RBWI5E * Soft CPI data slows trade from reflation * Dollar’s uptrend remains intact * ECB split on upside response bond yields By Stanley White TOKYO, March 11 (Reuters) – The dollar suffered losses against most currencies on Thursday after benign US consumer price data and lower Treasury yields led some investors to reduce bets on a rapid acceleration in inflation. The euro was the center of attention ahead of a European Central Bank meeting later Thursday, where policymakers are expected to send a message that they will prevent bond yields from continuing to rise and hurt the bloc’s economic outlook. Sentiment for the dollar remains fairly positive as the US economy recovers from the coronavirus pandemic and President Joe Biden’s $ 1.9 trillion stimulus bill garners final approval from Congress, so any further decline in the dollar is likely temporary. “Reflation trading is expected to continue,” said Junichi Ishikawa, senior currency strategist at IG Securities. “The dollar is the dominant theme in the currency market, and this is only a temporary break in its uptrend.” Against the euro, the dollar was traded at $ 1.1928, registering a loss of 0.2% from the previous session. The British pound bought up $ 1.3933 after rising 0.3% on Wednesday. The dollar was trading at 108.37 yen, extending a decline from a nine-month high reached on Tuesday. Against the safe haven Swiss franc, the dollar bought 0.9297. Consumer staples prices in the United States rose 1.3% year-on-year in February, a slight slowdown from an annual increase of 1.4% the month before, data showed Wednesday. The dollar and US Treasury yields have risen steadily amid expectations that the Federal Reserve’s lax monetary policy and fiscal stimulus will fuel inflation, but subdued pricing data has slowed the greenback. Traders are also watching closely for a 30-year Treasury bill auction later Thursday, which will be an important test of demand for new debt. A 10-year Treasury bill auction on Wednesday found sufficient demand, easing concerns about the ability of investors to absorb increased debt needed to fund the coronavirus response. If future auctions also attract reasonably strong demand, that would be another positive factor for the dollar, according to Ishikawa of IG Securities. The dollar index against a basket of six major currencies was little changed at 91.771. Investors tested the ECB’s resolve to curb the rise in bond yields. So far, the eurozone central bank has refrained from intervening in the large-scale market, and policymakers are divided over whether or not to intervene ahead of their meeting on Thursday. Policymakers have also expressed concern about the strength of the euro, which is another reason traders remain cautious ahead of the ECB meeting. Elsewhere, the Australian and New Zealand dollars have stabilized against the greenback, but sentiment for antipodes currencies remains strong due to rising commodity prices and expectations of acceleration in global trade. =================================================== ====== Currency bid price at 0014 GMT Description RIC Last US close Percentage change YTD Pct High bid Low bid Previous change Session Euro / Dollar $ 1.1928 $ 1.1929 -0.01% -2.37% +1.1930 + 1.1924 Dollar / Yen 108.3700 108.5400 -0.16% + 4.91% +108.4600 +108.3600 Euro / Yen 129.26 129.28 -0.02% +1.84% +129.3700 +129.2500 Dollar / Switzerland 0.9297 0.9299 -0.01% + 5.10% +0.9299 +0.9298 Sterling / Dollar 1.3933 1.3935 -0.01% + 1.99% + 1.3935 +1.3929 Dollar / Canadian 1.2612 1.2620 -0.04% -0.93% +1.2621 +1.2615 Aussie / Dollar 0.7740 0.7737 + 0.05% + 0.63% +0.7741 +0.7730 NZ 0.7198 0.7195 + 0.03% + 0.22% +0.7198 +0.7191 Dollar / Dollar All spots Tokyo spots Europe spots Volatilities Tokyo Forex market info from BOJ (Report by Stanley White; Edited by Sam Holmes)

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