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FOREX-Dollar drops to three-week lows after inflation data

    * Graphic: World FX rates tmsnrt.rs/2RBWI5E

 (Adds quote, context, updates prices; changes dateline,
previous LONDON, byline)
    By Karen Brettell
    NEW YORK, April 13 (Reuters) - The U.S. dollar fell to
three-week lows on Tuesday after data showed inflation making
strong gains in March, though the rise was not expected to alter
the Federal Reserve's commitment to keeping interest rates at
rock-bottom levels for years to come.
    The consumer price index jumped 0.6% last month, the largest
gain since August 2012, after rising 0.4% in February, the Labor
Department said on Tuesday. Excluding the volatile food and
energy components, the CPI rose 0.3%. The so-called core CPI
nudged up 0.1% in February.
    The dollar briefly spiked on the data, before reversing
course and dipping to three-week lows. Treasury yields also fell
after the data.
    "It keeps unchanged the outlook of the Fed to stay the low
rate course over the foreseeable future," said Joe Manimbo,
senior market analyst at Western Union Business Solutions in
Washington D.C. "We're likely to see inflation move higher,
before it eventually moves lower. So far the economy is sticking
to the Fed's script."
    Inflation is expected to show extra bullish comparisons to
last year in the coming months due to a drop in price pressures
in 2020 when businesses closed due to the spread of COVID-19.
    The U.S. central bank has said that it will look through
temporary increases in inflation and analysts expect it will
allow inflation to run hotter than previously expected before
raising rates.
    The next major U.S. economic release will be retail sales
data for March on Thursday.
    The dollar index fell as low as 91.93, the lowest
level since March 23. The euro gained 0.24% to
$1.1940. The greenback fell 0.22% to 109.16 Japanese yen
.
    The Australian dollar, which is a proxy for global
risk appetite, was little changed on the day at $0.7623.
    The New Zealand dollar gained 0.20% to $0.7042. The
country's central bank is expected on Wednesday to leave
interest rates and its quantitative easing program unchanged.

    Bitcoin hit a record $63,275, extending its 2021
rally to new heights a day before the listing of Coinbase shares
in the United States.

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    Currency bid prices at 9:38AM (1338 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
                                              Session                                             
 Dollar index                 91.9200        92.0910     -0.16%         2.155%        +92.3400    +91.9370
 Euro/Dollar                  $1.1940        $1.1912     +0.24%         -2.28%        +$1.1940    +$1.1878
 Dollar/Yen                   109.1600       109.4250    -0.22%         +5.71%        +109.7450   +109.1250
 Euro/Yen                     130.33         130.26      +0.05%         +2.69%        +130.4900   +129.8100
 Dollar/Swiss                 0.9208         0.9222      -0.13%         +4.10%        +0.9259     +0.9209
 Sterling/Dollar              $1.3738        $1.3747     -0.05%         +0.56%        +$1.3768    +$1.3697
 Dollar/Canadian              1.2560         1.2564      -0.03%         -1.36%        +1.2628     +1.2530
 Aussie/Dollar                $0.7623        $0.7623     +0.02%         -0.88%        +$0.7630    +$0.7585
 Euro/Swiss                   1.0995         1.0986      +0.08%         +1.75%        +1.1013     +1.0985
 Euro/Sterling                0.8689         0.8669      +0.23%         -2.76%        +0.8712     +0.8641
 NZ                           $0.7042        $0.7028     +0.20%         -1.94%        +$0.7043    +$0.7005
 Dollar/Dollar                                                                                    
 Dollar/Norway                8.5095         8.4800      +0.48%         -0.77%        +8.5660     +8.4865
 Euro/Norway                  10.1621        10.1037     +0.58%         -2.91%        +10.1855    +10.0976
 Dollar/Sweden                8.5404         8.5606      -0.07%         +4.20%        +8.5964     +8.5421
 Euro/Sweden                  10.1979        10.2050     -0.07%         +1.21%        +10.2188    +10.1811
 

 (Additional reporting by Elizabeth Howcroft in London
Editing by Paul Simao)
  
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