HONG KONG (Reuters – On Thursday, the and dollar was trading close to multi-week highs as investors became more confident in risk assets such as equities. The dollar, however, remained in a tight range in advance of U.S. Inflation data later in the day.

Last week, the Australian dollar touched $0.717. This was not too far away from $0.7194 the previous day, which was close to a three-week peak.

Westpac’s analysts in a morning note addressed to clients today pointed to “explosion in metals market, rise in global risk sentiment, and a softish U.S. Dollar” as reasons for the Aussie. They also added that a close higher than $0.7183 could indicate an extension to $0.7225, possibly to $0.7275.

MSCI World Index has risen 2% in the week to 22% after a January that was difficult. It is being helped by positive headlines and earnings reports, which suggest tensions between Russia, West, and Ukraine are easing. [MKTS/GLOB]

The Wednesday price of aluminium rose to a record 13-1/2 years high, while other industrial metals gained.[MET/L]

On Wednesday, the New Zealand dollar hit a 2-week high at $0.66975. The safe-haven yen was weak at 115.58 dollars, the weakest end of its current range, as well.

The currencies were holding up in anticipation of U.S. Consumer Price Index data. These could provide investors with further insight into the Federal Reserve’s rate of monetary tightening.

Economists polled in Reuters expect a 0.5% monthly increase and 7.3% year-over-year growth. But higher numbers than anticipated could indicate aggressive rate hikes.

The market expects a Federal Reserve interest rate hike of 25 basis points at its March meeting. Some are even talking about a 50 basis-point jump.

Loretta Mester of the Cleveland Federal Reserve stated on Wednesday that while she doesn’t believe there is a compelling argument to increase rates by 50 basis points, future increases in rate would only be possible if inflation remains strong.

The yields on U.S. and European government bonds have been increasing in anticipation of higher rates, although they were less so Wednesday morning and Thursday morning.

The yields of U.S. benchmark 10-year Notes were just 1.9354% as of Thursday morning in Asia, which was about the same level as Tuesday’s 1.970%. That is a 27 month high.

Euro was 1.1416 at Monday, after the euro fell this week following President Christine Lagarde’s declaration on Monday that there is no need to tighten or calming increase.

Bitcoin was stable at $44,200, just below Tuesday’s peak of $45,501 in cryptocurrencies.