(Adds comments, updates prices)
* Commodity currencies pare big advances from overnight
* Bitcoin retreats after earlier topping $55,000
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Kevin Buckland and Sagarika Jaisinghani
TOKYO, March 10 (Reuters) - The U.S. dollar rose on
Wednesday, clawing back some of the losses sustained overnight,
as U.S. yields found a floor following their drop from one-year
highs.
Riskier currencies including the Australian and New Zealand
dollars retreated after logging big gains on Tuesday. Bitcoin
BTC=BTSP turned lower after earlier topping $55,000 for the
first time since Feb. 22.
The euro EUR=EBS was 0.2% lower at $1.18815 after bouncing
off a 3-1/2-month low of $1.18355 on Tuesday.
Against the yen JPY=EBS , another traditional safe-haven
currency, the greenback traded 0.3% higher at 108.780 yen,
following its retreat from a nine-month top of 109.235.
"Yesterday, the dollar fell across the board as U.S.
Treasury yields slipped after the continued rise since the
beginning of this year. This morning, the yields have stopped
falling so those who missed out on buying the dollar when it was
rising, they saw the opportunity to buy it," said Masafumi
Yamamoto, chief currency strategist at Mizuho Securities.
But he added, "the rebound in the dollar is not that big
today."
The dollar index has closely tracked a surge in Treasury
yields in recent weeks, both because higher yields increase the
currency's appeal and as the bond rout shook investor
confidence, spurring demand for the safest assets.
The benchmark 10-year Treasury yield US10YT=RR stabilised
around 1.54% on Wednesday in Asia after a three-day drop from a
one-year high of 1.6250%.
The dollar index =USD strengthened about 0.2% to 92.147 in
Asia on Wednesday, after falling back sharply from a 3-1/2-month
high of 92.506 overnight.
Bond investors have been selling on bets that a
faster-than-expected economic rebound would spark a surge in
inflation, with President Joe Biden expected to sign a $1.9
trillion coronavirus aid package as soon as this week.
Many analysts still expect the dollar to weaken over the
course of this year, but the speed of recent gains has forced
some to adjust their views.
Westpac, which last week was talking about selling the
dollar index into 91, now sees it reaching as high as 94.50
before resuming last year's downtrend as the rest of the world
closes the gap with the U.S. economic recovery.
"Global reflation is alive and well, and Europe will get her
vaccination act together at some point too," Westpac strategists
wrote in a note.
"A continuation of the global recovery ... should see
commodity currencies outperform."
The Aussie AUD= dropped 0.4% to $0.7684 after jumping 1%
overnight, as a top central banker rebuffed market chatter about
early rate increases, helping pull local yields lower. AUD/
New Zealand's kiwi NZD= slipped 0.4% to $0.7146 following
a 0.8% increase on Tuesday.
In cryptocurrencies, bitcoin BTC=BTSP rose as high as
$55,855 on Wednesday before dropping back to $53,552.87. It hit
a record high of $58,354.14 on Feb. 21.
========================================================
Currency bid prices at 0425 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1881 $1.1901 -0.17% +0.00% +1.1904 +1.1878
Dollar/Yen JPY=D3 108.8000 108.5100 +0.27% +0.00% +108.8300 +108.5250
Euro/Yen EURJPY= 129.26 129.10 +0.12% +0.00% +129.3100 +129.0700
Dollar/Swiss CHF=EBS 0.9298 0.9280 +0.20% +0.00% +0.9301 +0.9279
Sterling/Dollar GBP=D3 1.3868 1.3889 -0.16% +1.50% +1.3892 +1.3861
Dollar/Canadian CAD=D3 1.2664 1.2640 +0.17% +0.00% +1.2667 +1.2635
Aussie/Dollar AUD=D3 0.7685 0.7721 -0.46% +0.00% +0.7719 +0.7677
NZ NZD=D3 0.7147 0.7176 -0.39% -0.46% +0.7182 +0.7143
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX
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World FX rates https://tmsnrt.rs/2RBWI5E
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