The dollar rose on Tuesday after higher-than-expected inflation data increased the possibility that the Fed might tighten its ultra-loose monetary policies earlier than previously thought. CPI in March showed rise of 1.5% y/y, beating expectations of a 1.4% rise – and smashing the previous year’s 1.1%. Month-on-month CPI rose 0.2% in March versus the 0.1% traders had priced in. CPI excluding volatile elements such as food and energy also rose by 1.7% in March from 1.6% previously, proving the inflation was not due to increases in commodity prices alone. Ex food and energy also beat expectations on a month-on-month basis after coming out at 0.2% versus forecasts of 0.1%. Commentary from Janet Yellen focused exclusively on the implementation of Basel capital controls and she did not discuss monetary policy. Other data showed a lower-than-expected result for Manufacturing in New York of 1.3 versus the 8.0 investors had been looking for.