FOREX-Dollar index higher, Aussie gains on better risk sentiment

Reuters

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 (New throughout, updates prices, changes byline, dateline;
previous LONDON)
    * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

 (Updates prices, adds detail and commentary)
    By Karen Brettell
    NEW YORK, March 2 (Reuters) - The dollar gained for a fourth
consecutive day on Tuesday after a recent spike in bond yields
challenged the market consensus for dollar weakness in 2021,
while riskier currencies rose as bond markets calmed and stocks
recovered.
    Rising yields have spooked markets in recent weeks, with
participants worried that an economic recovery from the impact
of the COVID-19 pandemic, combined with fiscal stimulus, could
cause a jump in inflation and potentially faster tightening from
the Federal Revere than previously anticipated.
    The rising volatility has benefited the greenback as
investors unwind trades.
    “If you do see volatility the natural inclination is to take
risk off the table, in this case it just basically means getting
out of existing positions and the dollar shorts are extremely
elevated at this point” said Bipan Rai, North American head of
FX strategy at CIBC Capital Markets in Toronto.
    Short U.S. dollar positions were last at $29.33 billion,
according to data by the Commodity Futures Trading Commission.
 urn:newsml:reuters.com:*:nL1N2KW3CA 
    The dollar index  =USD  rose 0.09% to 91.089, after earlier
reaching a three-week high of 91.396.
    Riskier currencies including the Australian dollar continued
to rebound from last week’s selloff as bond markets appeared to
calm. The Aussie also gained after the Reserve Bank of Australia
recommitted to keeping interest rates at historic lows.
 urn:newsml:reuters.com:*:nL3N2L00DC
    The Australian dollar  AUD=D3  gained 0.39% to $0.7802
versus the U.S. dollar, but remains below the three-year high of
$0.8007 reached on Thursday.
    Karen Jones, a technical analyst at Commerzbank, said that
the Aussie and other risky currencies including the Norwegian
krone appeared to be reversing from interim tops, which will
likely be positive for the U.S. dollar near-term.
    The “U.S. dollar bear trend is probably over” for now, Jones
said in a report.
    The greenback was last down 0.48% against the krone  NOK= 
at 8.520 krone, but is holding above the 8.313 krone per dollar
level reached last week, the weakest for the dollar in more than
two years.
    Safe-haven currencies including the Swiss franc and Japanese
yen, meanwhile, continued to weaken on Tuesday as risk appetite
improved.
    The Swiss franc hit its lowest since November 2020 against
the dollar at 0.9193  CHF=EBS . 
    The yen  JPY=D3  was the weakest since August at 106.95.
    The euro also fell after top European Central Bank officials
sounded the alarm over the rises in bond yields.  urn:newsml:reuters.com:*:nL5N2KZ5XK
    The single currency  EUR=EBS  was last down 0.10% at
$1.2037.
    Bitcoin dipped 1.12% to $49,097. Citi said in a report that
the popular cryptocurrency was at a "tipping point" and could
become the preferred currency for international trade
 BTC=BTSP .  urn:newsml:reuters.com:*:nL5N2KZ307
    
    ========================================================
    Currency bid prices at 9:41AM (1441 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
                                              Session                                             
 Dollar index      =USD       91.0890        91.0170     +0.09%         1.231%        +91.3960    +91.0090
 Euro/Dollar       EUR=EBS    $1.2037        $1.2049     -0.10%         -1.49%        +$1.2050    +$1.1992
 Dollar/Yen        JPY=D3     106.8350       106.8800    +0.05%         +3.52%        +106.9500   +106.7650
 Euro/Yen          EURJPY=    128.58         128.61      -0.02%         +1.31%        +128.7600   +128.1900
 Dollar/Swiss      CHF=EBS    0.9176         0.9148      +0.30%         +3.71%        +0.9193     +0.9146
 Sterling/Dollar   GBP=D3     $1.3916        $1.3926     -0.06%         +1.87%        +$1.3931    +$1.3860
 Dollar/Canadian   CAD=D3     1.2648         1.2645      +0.04%         -0.66%        +1.2697     +1.2633
 Aussie/Dollar     AUD=D3     $0.7802        $0.7772     +0.39%         +1.43%        +$0.7815    +$0.7737
 Euro/Swiss        EURCHF=    1.1043         1.1023      +0.18%         +2.18%        +1.1054     +1.1004
 Euro/Sterling     EURGBP=    0.8649         0.8651      -0.02%         -3.22%        +0.8667     +0.8638
 NZ                NZD=D3     $0.7266        $0.7266     +0.01%         +1.20%        +$0.7279    +$0.7210
 Dollar/Dollar                                                                                    
 Dollar/Norway     NOK=D3     8.5195         8.5590      -0.48%         -0.80%        +8.6270     +8.4945
 Euro/Norway       EURNOK=    10.2526        10.3100     -0.56%         -2.05%        +10.3790    +10.2268
 Dollar/Sweden     SEK=       8.4238         8.4235      -0.11%         +2.77%        +8.4703     +8.4150
 Euro/Sweden       EURSEK=    10.1398        10.1512     -0.11%         +0.63%        +10.1667    +10.1327
 


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World FX rates    https://tmsnrt.rs/2RBWI5E
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 (Additional reporting by Elizabeth Howcroft in London; Editing
by Bernadette Baum)
 ((karen.brettell@thomsonreuters.com))

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