The US dollar fell on Tuesday, to deepen its losses for the third straight day, and hit 7-week low, as inflation concerns receded in the US after the Federal Reserve officials successive confirmations that the recent prices hike is temporary.

The dollar index fell over 0.2% to the lowest since March 21 at 90.85 points, after opening at 91.04 points, and hit a high of 91.10 points.

The US dollar fell 0.6% yesterday, its second daily loss, as investors focused on buying high-risk currencies.

The greenback lost 0.6% last week, and posted its second straight weekly loss, due to the latest developments in the US bond market.

Fed Governor Christopher Waller said on Friday he sees the US economy as "set to take off" as vaccination continues, but the recent rise in inflation is likely to be temporary.

Oil prices continued to rise as the US market opened on Tuesday, to head for the second straight daily loss, and hit a 5-week high as the US dollar fell against its peers, amid demand concerns in India and Japan, ahead of the release of preliminary data on the US crude inventories.

US crude rose 1.3% to the highest level since March 18 at $64.36 a barrel, after opening at $63.51, and hit a low at $63.41, and Brent crude rose 1.3% to the highest since March 18 at $68.04 a barrel, after opening at $67.18, and hit a low of $67.02.

US crude gained 0.7% yesterday, and Brent crude futures rose 0.6%, in the fifth daily gain out of six days, as most dollar-denominated commodities and metals rallied.

The dollar index fell 0.2%, deepening its losses for the third straight day and hit a 7-week low at 90.85 points.

The Indian health authorities announced 261,500 new Covid-19 cases on Sunday, to a total of nearly 14.8 million, second only to the US, and the death toll reached a new daily record of 1,501 victims, to a total of 150,177 victims.

To mitigate these developments, the Indian authorities may resort to tightening the lockdown, which would weigh down on fuel consumption in the third largest oil consumer in Asia.

Reuters reported that many Japanese companies believe that the Japanese economy will suffer a fourth wave of infections, which would deal another blow to businesses in the country.

The American Petroleum Institute will release its preliminary report on the US crude inventories, amid the US Energy Information Administration will release the official data on Wednesday.

European stocks fell on Tuesday, and pulled back further from all-time highs as profit-taking continued, in addition to investors' risk aversion, after the US stocks fell.

The Stoxx Europe 600 index fell 1.2% as of 11:25 GMT, after closing lower by 0.1% yesterday on profit-taking from its all-time high of 443.6 points.

The travel and entertainment sector saw the largest losses in Europe today, falling 2.4%, due to a broad sell-off wave in the sector.

S&P 500 futures fell 0.5% ahead of Wall Street opening after the index closed lower by more than 0.5% yesterday, after hitting its record high of 4,191.31 points.

Back to Europe, the Euro Stoxx 50 index fell 1.1% after it hit the highest level since January 2008 at 4,040.9 points yesterday, France's CAC 40 fell 1.5% after it hit the highest level since November 2000 at 6,319.1 points.

Germany's DAX index fell 0.9% hit a new record high of 15,501.8 points, while the UK's FTSE 100 fell 1.1%.

Oil prices jumped on Tuesday, to head for the second straight daily loss, and hit a 5-week high as the US dollar fell against its peers, amid demand concerns in India and Japan.

US crude rose 1.3% to the highest level since March 18 at $64.36 a barrel, after opening at $63.51, and hit a low at $63.41, and Brent crude rose 1.3% to the highest since March 18 at $68.04 a barrel, after opening at $67.18, and hit a low of $67.02.

US crude gained 0.7% yesterday, and Brent crude futures rose 0.6%, in the fifth daily gain out of six days, as most dollar-denominated commodities and metals rallied.

The dollar index fell 0.2%, deepening its losses for the third straight day and hit a 7-week low at 90.85 points.

The Indian health authorities announced 261,500 new Covid-19 cases on Sunday, to a total of nearly 14.8 million, second only to the US, and the death toll reached a new daily record of 1,501 victims, to a total of 150,177 victims.

To mitigate these developments, the Indian authorities may resort to tightening the lockdown, which would weigh down on fuel consumption in the third largest oil consumer in Asia.

Reuters reported that many Japanese companies believe that the Japanese economy will suffer a fourth wave of infections, which would deal another blow to businesses in the country.