Dollar moves higher, overcoming fears of inflation that depressed bond prices
NEW YORK -- The dollar ambled higher in listless trading, shrugging off inflation fears that helped push bond prices lower.</br></br>While the dollar has tended recently to follow in step with declines in the bond market, yesterday's moves suggested a mild delinking of the bond and currency markets, traders said.</br></br>In the past, the dollar has tended to rise on inflationary pressures that boded well for higher U.S. interest rates -- a scenario that is anathema to the bond market.</br></br>But since February, currency markets have ignored four interest-rate increases, only to follow the misfortunes of a collapsing U.S. bond market.</br></br>Yesterday, however, proved to be one of the exceptional days on which the dollar followed its own drumbeat.