* Graphic: World FX rates tmsnrt.rs/2RBWI5E
* Dollar stands tall after strong CPI print
* Traders shift focus on jobless claims and retail sales
* New Zealand dollar briefly gains on reopening hopes
By Stanley White
TOKYO, May 13 (Reuters) - The dollar held gains on Thursday,
supported by higher Treasury yields after a surprisingly strong
rise in U.S. consumer prices fanned fears about an increase in
inflationary pressure.
Traders will now turn attention to U.S. weekly jobless
claims due later on Thursday and retail sales numbers on Friday
for guidance on whether upward pressure on prices will persist.
The greenback is likely to extend its gains as some
investors unwind bearish bets, and re-position in anticipation
of sustained inflation pressures as more economies emerge from
the coronavirus pandemic, analysts said.
"The move in the dollar was fuelled by the upward surprise
in consumer prices, but also because the market was caught on
the short side," said Shinichiro Kadota, foreign exchange
strategist at Barclays.
"This market is aware of the potential for further upside
surprises to inflation. This will support the dollar."
The dollar traded at 109.69 yen, close to its
strongest level in five weeks.
Against the euro, the dollar stood at $1.2077,
holding onto a 0.6% gain from the previous session.
The British pound bought $1.4064.
The dollar also traded at 0.9085 Swiss franc,
close to a one-week high.
U.S. consumer prices increased by the most in nearly 12
years in April as booming demand amid a reopening economy pushed
against supply constraints, data on Wednesday
showed.
Benchmark 10-year U.S. Treasury yields rose to a
five-week high of 1.7040%, increasing the appeal of
dollar-denominated assets.
Signs of a stronger labour market and increased consumer
spending would offer more evidence that inflationary pressure
will pick up, which could push yields and the dollar even
higher, traders said.
The New Zealand dollar briefly rose after Prime
Minister Jacinda Ardern said she is exploring quarantine-free
travel with other countries, but the kiwi gradually gave up
those gains amid reluctance to sell the greenback.
The Australian dollar also held steady against its
U.S. counterpart.
The onshore yuan traded at 6.4545 per dollar,
extending a pullback from an almost three-year high reached on
Monday as overseas-listed Chinese firms bought dollars for
dividend payments.
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Currency bid prices at 0500 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar $1.2077 $1.2071 +0.06% -1.15% +1.2089 +1.2070
Dollar/Yen 109.6900 109.7050 -0.01% +6.20% +109.7750 +109.5000
Euro/Yen
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