* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Aussie and kiwi rise early against dollar
* British pound up as exit from lockdown looms on horizon
* Rising Treasury yields to slow dollar's decline
By Stanley White
TOKYO, Feb 22 (Reuters) - The U.S. dollar fell to a
three-year low against its Australian counterpart and teetered
near three-year low against the British pound as progress in
curbing coronavirus infections boosted sentiment for riskier
assets.
The greenback also slipped toward a three-year low against
the New Zealand dollar as traders sought currencies with close
ties to the global commodities trade due to an improving
economic outlook.
The U.S. currency, which is often considered a safe asset
during times of uncertainty, is likely to fall further as more
investors focus on economic recovery once the worst of the
coronavirus pandemic passes.
"Commodity currencies and the pound are particularly strong
against the dollar, and this trend looks set to continue," said
Yukio Ishizuki, foreign exchange strategist at Daiwa Securities.
"Britain's vaccination programme is making a lot of
progress. Economic activity is gradually returning to normal in
many places, which puts some pressure on the dollar."
The Australian dollar AUD=D3 hit $0.7892, its highest
since March 2018 while the New Zealand currency NZD=D3 rose to
$0.7315, its strongest since April 2018.
Vaccine rollouts will ease risks to Australia's economy over
the year, ratings agency Fitch said on Monday when it maintained
the country's top AAA credit rating, albeit with a negative
outlook. The euro EUR=D3 last traded at $1.2124
The British pound GBP=D3 bought $1.4030, close to a
three-year high.
Against the yen JPY=D3 , the dollar held steady at 105.45
Australia on Monday began its mass COVID-19 vaccine
programme as the country looked set to report no local cases for
the third straight day, which gave the Aussie a boost.
Sterling is also in focus because British Prime Minister
Boris Johnson will plot a path out of coronavirus lockdowns
later on Monday, aided by one of the fastest vaccine rollouts in
the world. Dollar net short positioning fell last week to $29.09
billion, which is the lowest level since mid-December, according
to calculations by Reuters and Commodity Futures Trading
Commission data.
U.S. dollar net shorts have fallen for four straight weeks,
which shows that there are still some investors who are
optimistic about the greenback.
Long-term Treasury yields have been rising recently, and the
United States has also improved its response to the coronavirus,
which will lend the dollar some mild support, Daiwa's Ishizuki
said.
In the cryptocurrency market, bitcoin BTC=BTSP eased
slightly to $57,090, but was still near a record high as the
digital asset gains more mainstream acceptance.
Ether ETH=BTSP , a rival cryptocurrency, fell to $1,918.
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Currency bid prices at 0014 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2124 $1.2118 +0.04% -0.78% +1.2129 +1.2110
Dollar/Yen JPY=D3 105.4550 105.4900 +0.02% +2.15% +105.6150 +105.5050
Euro/Yen EURJPY= 127.86 127.75 +0.09% +0.74% +127.9800 +127.7000
Dollar/Swiss CHF=EBS 0.8966 0.8965 +0.04% +1.37% +0.8974 +0.8968
Sterling/Dollar GBP=D3 1.4030 1.4001 +0.18% +2.66% +1.4030 +1.4013
Dollar/Canadian CAD=D3 1.2603 1.2619 -0.12% -1.02% +1.2617 +1.2598
Aussie/Dollar AUD=D3 0.7884 0.7868 +0.20% +2.49% +0.7891 +0.7864
NZ NZD=D3 0.7305 0.7297 +0.10% +1.71% +0.7316 +0.7292
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX
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