11:09 AM EDT, 04/09/2024 (MT Newswires) -- The dollar declined for a second day Tuesday as the National Federation of Independent Business's small business optimism index for March fell to a 12-year low of 88.5, reflecting a more downbeat view of the economy than in recent official data and marking the 27th consecutive month below the poll's 50-year average of 98.

Inflation continues to be the greatest concern in the sector, with companies raising prices to compensate for higher costs and increased uncertainty.

The yield on the benchmark two-year Treasury note eased five basis points, surrendering the entirety of Monday's advance ahead of Wednesday's key consumer price index report.

Fed Chairman Jerome Powell has largely dismissed CPI readings that exceeded expectations in January and February, maintaining a forecast for three rate cuts later this year. According to a Bloomberg poll of analysts, CPI is expected to rise to 3.4% year-on-year from 3.2% in the previous month.