(Adds quotes, details; updates prices; changes byline, dateline) By Karen Brettell NEW YORK, April 11 (Reuters) – The dollar fell on Tuesday as investors waited on inflation data for further signs of whether price pressures are ebbing and what it means for further Federal Reserve interest rate hikes. Consumer price data on Wednesday is expected to show headline inflation rose by 0.2% in March, while core inflation rose 0.4%. “A lot of traders are focused on this inflation data,” said Edward Moya, senior market analyst at OANDA in New York. “Everyone’s trying to get a sense of does the disinflation process return and does this complicate what the Fed does.” The Fed is seen as likely to hike rates by an additional 25 basis points at its May 2-3 meeting, before pausing in June. Markets are also pricing for the Fed to cut rates by year-end on an expected recession, though Fed officials have stressed the need to keep rates high in order to bring down inflation. Strong jobs data for March have added to expectations that the U.S. central bank will complete one more rate hike. The data on Friday showed employers added 236,000 jobs while the unemployment rate fell to 3.5%. The dollar index fell 0.36% to 102.08. The euro gained 0.52% to $1.0918. The euro was also likely boosted by a rise in European bond yields on Tuesday as traders in the region returned after markets were closed on Friday and Monday for the Easter holiday. Algorithms trading currencies based on the difference between European and U.S. rates might have sold euros for dollars when U.S. Treasury yields rose after the jobs data while European bond markets were closed, said Simon Harvey, head of FX analysis at Monex Europe. European bond yields rose sharply on Tuesday, catching up after the break. GVD/EUR “There’s just that catch-up effect flushing through,” Harvey said. The dollar also slid against the yen, after jumping on Monday as Bank of Japan Governor Kazuo Ueda signaled no hurry to dial back its massive stimulus. The dollar was last down 0.33% against the Japanese currency at 133.16. In cryptocurrencies, bitcoin breached the key $30,000 level for the first time in 10 months. It was last up 1.8% on the day at $30,184. ======================================================== Currency bid prices at 9:34AM (1334 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 102.0800 102.4700 -0.36% -1.362% +102.5100 +102.0000 Euro/Dollar $1.0918 $1.0861 +0.52% +1.89% +$1.0926 +$1.0862 Dollar/Yen 133.1600 133.6000 -0.33% +1.56% +133.6800 +132.9700 Euro/Yen 145.38 145.08 +0.21% +3.62% +145.4300 +144.8800 Dollar/Swiss 0.9052 0.9096 -0.49% -2.12% +0.9093 +0.9038 Sterling/Dollar $1.2435 $1.2384 +0.44% +2.84% +$1.2456 +$1.2388 Dollar/Canadian 1.3501 1.3509 -0.05% -0.35% +1.3516 +1.3483 Aussie/Dollar $0.6662 $0.6642 +0.28% -2.29% +$0.6680 +$0.6640 Euro/Swiss 0.9882 0.9876 +0.06% -0.13% +0.9885 +0.9853 Euro/Sterling 0.8778 0.8768 +0.11% -0.75% +0.8784 +0.8764 NZ $0.6210 $0.6217 -0.13% -2.21% +$0.6233 +$0.6199 Dollar/Dollar Dollar/Norway 10.5760 10.5260 +0.52% +7.82% +10.6010 +10.4690 Euro/Norway 11.5432 11.4231 +1.05% +10.06% +11.5737 +11.4052 Dollar/Sweden 10.4531 10.5212 -0.16% +0.44% +10.5166 +10.4436 Euro/Sweden 11.4085 11.4267 -0.16% +2.38% +11.4412 +11.3920 (Reporting by Karen Brettell; Additional reporting by Alun John in London; Editing by Alexander Smith)
