FOREX-Dollar gains further as Treasury yields resume climb

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

By Saikat Chatterjee
LONDON, March 15 (Reuters) - The dollar gained for a second
consecutive session on Monday as rising U.S. Treasury yields
forced traders to cut their bearish dollar bets to four-month
lows.
Benchmark 10-year Treasury yields US10YT=RR were trading
at 1.6320% on Monday, close to Friday's top of 1.6420%, a level
last seen in February. Rising U.S. yields have lifted the
greenback in recent weeks thanks to widening interest rate
differentials relative to other major bond markets.
The dollar index =USD , which tracks the U.S. currency
against six major peers, held at around 91.84 in early London
trading on Monday. It hit a late November 2020 high of 92.51
last week.
Rising bond yields will continue to dominate investors'
minds this week before a Federal Reserve meeting at which some
analysts expect policymakers to strike an optimistic tone on the
U.S. economy.
"The Fed is not expected to tinker with its monetary policy
but instead communicate via forecasts that the situation is
under control and that markets are running way ahead of
themselves," SEB analysts said in a note.
U.S. producer prices increased strongly in February, leading
to the largest annual gain in nearly 2-1/2 years, with the
country's economy set for a massive shot in the arm from
President Joe Biden's $1.9 trillion stimulus
package.[ The greenback rose 0.2% against the yen to 109.22 yen
JPY=EBS , drifting to its highest since June 2020.
The euro weakened 0.2% to $1.1925 EUR=EBS after rising
last week for the first time in three weeks as latest data
showed hedge funds slashed their net euro positions.
The Australian dollar AUD=D3 -- viewed widely as a liquid
proxy for risk appetite -- fell 0.3% to $0.7732, extending
Friday's 0.4% loss.
Bitcoin weakened 1.4% after surging to a record high of
$61,781.83 over the weekend.
The dollar has been supported by a paring of bets for its
decline, with speculators cutting net short positions to the
lowest since mid-November in the week ended March 9.


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World FX rates https://tmsnrt.rs/2RBWI5E
JPY positions https://tmsnrt.rs/3crNRPE
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