LONDONSINGAPORE, March 14 Reuters The dollar rose in somewhat calmer trading on Tuesday, after tumbling on Monday following the collapse of Silicon Valley Bank SVB, as investors waited for the release of U.S. consumer inflation data later in the day.

Tuesday39;s consumer price index CPI figures have the potential to drive further volatility in global markets, coming a day after fears of a potential banking crisis caused traders to rapidly scale down their expectations for Federal Reserve rate hikes.

The euro was last 0.36 lower at 1.069 as the greenback bounced. It hit a onemonth high of 1.075 on Monday and rose 0.85 across the session.

The dollar was up 0.79 to 134.25 yen , reversing some of Monday39;s 1.4 slide.

Essentially it39;s a very, very nervous market, said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.

We have seen some retracement of the dollar39;s losses overnight, but it39;s quite partial.

Ahead of us of course is the CPI reading today, which is quite important because it39;s basically the last data point before the Fed decision next week.

Over the weekend, U.S. authorities launched emergency measures in response to SVB39;s collapse, promising to protect depositors in a bid to shore up banking confidence. U.S. President Joe Biden on Monday vowed to take action to ensure the safety of the banking system.

STOCKS TUMBLING

Yet SVB39;s demise the largest bank failure since the 2008 financial crisis sent bank stocks tumbling in Europe and…