NEW YORK ( TheStreet) -- The U.S. dollar was mixed against the majors as safe-haven demand has been blunted by interest rate moves. The euro recovered as eurozone inflation continued to rise, topping the consensus expectation and reaching a two-year high. The rise of Germany yields has helped the euro stabilize a bit in this uncertain risk environment, though further gains may be topped while uncertainty in Egypt persists. Sterling firmed too, and is likely to takes a cue from this week's UK PMI report. The yen has given up some of its gains from last week, while the Swiss franc is a touch softer on the day. Egypt's situation remains fluid and the markets remain vulnerable to negative headline risk and so safe-haven demand for USD, JPY, and CHF can flare up at any given moment and so markets will remain choppy. Global bonds were mixed even as risk appetite wanes and stock markets decline. Inflation concerns were prompting a rise in short-term yields as German two-year yields approached the highest in nearly two years after eurozone inflation rose again. Eurozone peripheral spreads are mostly narrower amid press reports that Greece may buy back some of its debt with funds from the EFSF. New hawk at the Bank of England, Martin Weale, said he is concerned about inflation expectations becoming ingrained, prompting a 3 basis points rise in two-year gilts.