FOREX-Dollar gains across the board as Powell sticks to script

* Yen, Swiss franc, euro hit multi-month lows
* Risk currencies slide
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By Ritvik Carvalho and Joice Alves
LONDON, March 5 (Reuters) - The dollar rose to multi-month
highs against the euro, yen and Swiss franc on Friday after
Federal Reserve Chair Jerome Powell expressed no concern about a
recent sell-off in bonds and stuck to his stance of keeping
interest rates low for a long time.
At a Wall Street Journal forum on Thursday, Powell said the
sell-off in Treasuries was not "disorderly" or likely to push
long-term rates so high the Fed might have to intervene more
forcefully, re-igniting a sell-off in Treasuries. He also reiterated a commitment to maintain ultra-easy
monetary policy until the economy is "very far along the road to
recovery."
"The U.S. dollar rose sharply higher post-Powell comments
(as) many in the market I sense were looking for stronger
rhetoric from the Fed to put a break on further rallies in
yields," said Neil Jones, head of FX sales at Mizuho Bank. "We
didn't get it and the dollar is pushing higher across the board
on expectations of further increases in U.S. yields."
The euro EUR=EBS slipped 0.4% to a three-month low of
$1.19255 following a 0.7% slump overnight.
The dollar reached a nine-month high of 108.45 yen
JPY=EBS , gaining 0.5% against the Japanese currency.
Japanese Finance Minister Taro Aso declined to comment on
the yen's decline when asked about how the depreciation would
affect the economy. "With the BOJ's (Governor) Kuroda saying that the BOJ has no
need to change its yield guidance, the yen is, along with the
Swiss franc, taking the brunt of the dollar's yield-fuelled
recovery," said Kit Juckes, chief FX strategist at Societe
Generale. "Both look cheap, but the yen in particularly isn't
cheap enough yet".
The dollar index =USD hit a three-month high and last
stood at 91.960 in early London deals after gaining 0.7% on
Thursday.
The dollar's gains came as the benchmark 10-year Treasury
yield US10YT=RR jumped back above 1.5%, rising as high as
1.55% in European trade. Last week, it soared to a one-year peak
of 1.614%. Impending U.S. fiscal stimulus is adding fuel to
expectations of higher inflation, as the accelerating roll-out
of COVID-19 vaccines boosts confidence in an economic recovery.
Riskier currencies, including the Australian and New Zealand
dollars, slid along with stocks as investor sentiment again
turned sour. MKTS/GLOB
"Once the bond rout comes to an end, once the volatility
fades away, the commodity currencies (the Aussie and the kiwi)
are going to be able to climb back up because commodity prices
aren't falling," said Joseph Capurso at Commonwealth Bank of
Australia.
The Aussie AUD=D3 weakened 0.6% to $0.7673, a three-week
low, extending Thursday's 0.7% drop. The kiwi NZD=D3 fell 0.6%
to $0.7140.
In the cryptocurrency market, bitcoin BTC=BTSP fell 3.7%
to $46,571. Ether ETH=BTSP dropped 5.52% to $1,453.29.

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