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Markets’ reaction to rising fiscal uncertainty in the U.S. might be more harmful to the dollar than to Treasury bonds, Deutsche Bank wrote. The dollar remained higher.
The dollar fell to a two-week low on the back of mounting concerns over spiraling U.S. government debt.
Gold was on track to post a weekly gain of more than 3%, supported by a softer U.S. dollar and concerns over the country’ fiscal and economic outlook.
Take a look at how various financial markets have traded following the release of April’s consumer-price index: Treasury yields, the dollar, oil and gold.