FOREX-Dollar at 3-week low as Fed's dovish message sinks in

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By Hideyuki Sano
TOKYO, April 15 (Reuters) - The dollar nursed losses on
Thursday, holding near a three-week low against a basket of
currencies as U.S. bond yields pulled back from last month's
surge with investors buying the Federal Reserve's arguments that
interest rates can stay low.
The dollar index dipped to a four-week low of 91.571
overnight and last stood at 91.601 =USD .
The euro traded at $1.19845 EUR= , near its highest level
in four weeks and having gained 2.2% so far this month.
The dollar changed hands at 108.93 JPY= , after hitting a
three-week low of 108.755 on Wednesday.
"The dollar has been losing steam a bit in line with falls
in U.S. bond yields as the Fed has maintained it dovish stance,"
said Yujiro Goto, chief currency strategist at Nomura
Securities.
Repeated assurances from Fed officials that it will keep
interest rates low have helped stabilise U.S. bonds, especially
at the short end of the market.
While many investors remain nervous the Fed could change its
tone later this year if inflation readings swing much higher
than expected, for now they are content to give the Fed the
benefit of the doubt.
Ten-year U.S. bond yields eased to 1.636% US10YT=TWEB ,
well below a 14-month peak of 1.776% hit late March, reducing
the dollar's yield attraction.
Fed Chair Jerome Powell said on Wednesday that the U.S.
central bank will reduce its monthly bond purchases before it
commits to an interest rate increase, a scenario many investors
have regarded as a given. A weaker U.S. dollar also saw commodity currencies
supported. The Australian dollar stood at $0.7724 AUD=D4 near
Wednesday's three-week high, having broken out of its tight
trading band over the last few weeks.
The New Zealand dollar likewise hit a three-week high of
$0.7150 and last quoted at $0.7140 NZAD=D4 .
"When economic data is strong and the Fed is not turning
hawkish, we could see risk-sensitive currencies gaining against
both the dollar and the yen," said Nomura's Goto.
Thursday is busy with U.S. data, including retail sales data
for March and weekly jobless data due at 1230GMT.
Bitcoin stood near a record high hit on Wednesday of
$64,895.22, last trading at $63,000 BTC=BTSP as cryptocurrency
platform Coinbase COIN.O made its debut in Nasdaq in direct
listing.
After a volatile trade, the stock closed at $328.28, which
gave the firm market capitalisation of $65.39 billion, about the
same as New York Stock Exchange owner Intercontinental Exchange
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World FX rates https://tmsnrt.rs/2RBWI5E
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