US dollar up a second day on short-covering

London

THE US dollar rose on Tuesday as investors further unwound bearish bets against it following a bounce in Treasury yields and ahead of US inflation data flagged as the next risk event for the market.

"The US inflation data is a big risk for the markets and given the extreme short dollar positioning in the market, the greenback may jump higher if inflation surprises on the upside," said Caxton FX analyst Alexandra Russell-Oliver.