Inflation expectations jumped to 4.3% this month from 3.3% in January, the highest reading since 2023.

The dollar index (DXY00) on Tuesday fell by -0.27% on weak US economic news and ongoing tariff concerns. The dollar also fell due to the sharp -11 bp decline in the 10-year T-note yield that weakened the dollar’s interest rate differentials.

The seven-point drop marks the largest decline since August 2021, indicating consumers are concerned about more inflation to come and a cooling economy.