The dollar index edged down on Friday and major currency pairs were stuck within recent ranges as markets shrugged off Thursday’s high U.S. inflation number, believing the Federal Reserve’s stance that it is likely to be a temporary blip.

U.S. consumer prices rose 5% year-on-year in May, the biggest jump in nearly 13 years. read more Currency markets had been sluggish all week in anticipation of the data, but when it came in above expectations, there was little market reaction.

The Federal Reserve has repeatedly said that it expects any rise in inflation to be temporary and that it is too soon to be discussing reducing its monetary stimulus. The dollar index edged lower in the Asian session and at 0723 GMT, was down 0.1% on the day at 89.995 . It was on track for a small weekly loss of around 0.2%.

Benchmark 10-year U.S. Treasuries actually rallied to a three-month high in the wake of CPI, as short sellers quit bets on rising yields. “We agree with the Fed that elevated inflation pressures will prove short-lived,” UBS strategists said in a note to clients.

“Both Federal Reserve and European Central Bank policymakers have been unusually consistent in stressing that policy will only need to be tightened if inflation becomes more sustained—which they currently view as unlikely.”

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