* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
(New throughout, updates prices, changes byline, dateline;
previous LONDON)
By Karen Brettell
NEW YORK, March 1 (Reuters) - The dollar index rose to a
three-week high on Monday as investors bet on faster growth and
inflation in the United States, while the Australian dollar
gained after Australia's central bank increased its bond
purchases in a bid to stem rapidly rising yields.
The dollar has gained in the past few sessions as U.S.
government bond yields jump on expectations that growth and
inflation will increase as the administration prepares new
fiscal stimulus and vaccinations against COVID-19 become more
widespread.
Benchmark 10-year Treasury yields US10YT=RR edged higher
to 1.432% on Monday, but are holding below the one-year high of
1.614% reached on Thursday.
"The dollar is trading relatively bid on the yield
differential, on the growth expectation differentials," said
Boris Schlossberg, managing director of FX strategy at BK Asset
Management in New York.
The euro is lagging meanwhile, as the region falls behind in
growth expectations.
"Everyone's waiting for Europeans to catch up, both on the
vaccination front and then on the stimulus front. When they do,
that becomes the final piece of the puzzle that really propels
global growth forward," Schlossberg said.
The dollar index =USD rose 0.28% to 91.009, after earlier
reaching 91.127, the highest level since Feb. 8.
The euro EUR=RBS fell 0.17% against the greenback to
$1.2048.
Traders were also waiting for a speech later on Monday by
President Christine Lagarde, who is under pressure to act
against rising yields in the euro zone.
"There is little doubt in my mind that central banks will
eventually lean quite hard against a sustained rise in yields.
They simply can't afford to see it happen with debt so high,"
Deutsche Bank strategist Jim Reid wrote in a note.
The Australian dollar rebounded from Friday's three-week
lows after the Reserve Bank of Australia (RBA) increased its
bond purchases to A$4 billion, raising expectations that other
central banks could also buy more bonds if yields continue to
surge. "That's a very telling sign that central banks are not going
to be intimidated by the bond market at this point," Schlossberg
said.
The Aussie AUD=D3 was last at $0.7757, after dropping to
$0.7693 on Friday.
The RBA will hold its monthly policy meeting on Tuesday, and
markets expect it to reinforce its forward guidance for three
more years of near-zero rates. The safe haven yen JPY=D3 reached 106.77 against the
dollar, its weakest level since Aug. 28.
In cryptocurrency markets, bitcoin BTC=BTSP rose 6.69% to
$48,275 but was still off a record high of $58,354.14 hit on
Feb. 21.
========================================================
Currency bid prices at 9:53AM (1453 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 91.0090 90.7680 +0.28% 1.142% +91.1270 +90.6830
Euro/Dollar EUR=EBS $1.2048 $1.2070 -0.17% -1.38% +$1.2102 +$1.2029
Dollar/Yen JPY=D3 106.6300 106.5700 +0.02% +3.20% +106.7700 +106.4000
Euro/Yen EURJPY= 128.46 128.60 -0.11% +1.21% +128.9300 +128.3700
Dollar/Swiss CHF=EBS 0.9143 0.9086 +0.65% +3.37% +0.9149 +0.9060
Sterling/Dollar GBP=D3 $1.3920 $1.3923 -0.06% +1.85% +$1.3998 +$1.3905
Dollar/Canadian CAD=D3 1.2669 1.2740 -0.55% -0.50% +1.2734 +1.2655
Aussie/Dollar AUD=D3 $0.7757 $0.7799 -0.54% +0.83% +$0.7773 +$0.7706
Euro/Swiss EURCHF= 1.1014 1.0968 +0.42% +1.93% +1.1023 +1.0964
Euro/Sterling EURGBP= 0.8654 0.8670 -0.18% -3.17% +0.8669 +0.8621
NZ NZD=D3 $0.7268 $0.7231 +0.50% +1.20% +$0.7292 +$0.7227
Dollar/Dollar
Dollar/Norway NOK=D3 8.5855 8.6665 -0.94% -0.02% +8.6610 +8.5760
Euro/Norway EURNOK= 10.3460 10.4481 -0.98% -1.16% +10.4640 +10.3347
Dollar/Sweden SEK= 8.4296 8.4359 -0.27% +2.85% +8.4927 +8.3980
Euro/Sweden EURSEK= 10.1591 10.1868 -0.27% +0.82% +10.2269 +10.1517
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