(Corrects paragraph 4 spelling of analyst's name)
* Powell sticks to message of ultra-easy policy for some
time yet
* Recovery hopes boost commodity currencies and British
pound
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Kevin Buckland
TOKYO, Feb 25 (Reuters) - The safe-haven U.S. dollar
languished near three-year lows versus riskier currencies on
Thursday as continued dovish signals from the Federal Reserve
stoked reflation bets.
The greenback sank to a fresh low against the Australian
dollar, and held near lows set overnight against its British,
Canadian and New Zealand peers.
Fed Chair Powell reiterated on Wednesday that the central
bank would not adjust policy until the economy is clearly
improving, and would look through any near-term inflation spike.
The remarks to the House of Representatives Committee on
Financial Services mirrored his testimony before the Senate the
day before. "Powell made it very clear that the improvement in the
economic outlook thus far will not instigate the Fed to tighten
monetary policy," National Australia Bank foreign exchange
strategist Rodrigo Cattrill wrote in a client note.
"The punch bowl ain't going anywhere anytime soon and the
policy backdrop should remain supportive for risk assets for
some time."
Easy financial conditions, the promise of fiscal stimulus
and an accelerating COVID-19 vaccine rollout have driven money
into what's come to be known as the reflation trade, refering to
bets on an upswing in economic activity and prices.
Commodity-linked currencies are placed to benefit from a
pick-up in global trade, while investors have also cheered
Britain's progress in recovering from the coronavirus pandemic.
Australia's dollar AUD=D4 rose 0.1% to $0.79717 on
Thursday in Asia after earlier touching a fresh three-year high
of $0.7975.
The New Zealand NZD=G4 and Canadian dollars CAD=D4
traded just off Wednesday's multi-year highs.
Sterling GBP=D4 was little changed at $1.4143 after
pushing to the cusp of $1.43 overnight for the first time since
April 2018.
The euro EUR=EBS traded near the top of its recent range
at $1.2168, near the almost one-month high of $1.2180 touched
earlier this week.
The dollar strengthened though against other traditional
safe haven currencies, rising 0.1% to 105.94 yen JPY=EBS for a
third day of gains. It held near the three-month high of 90.945
Swiss francs CHF=EBS reached overnight.
========================================================
Currency bid prices at 010 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2166 $1.2170 -0.03% -0.43% +1.2172 +1.2140
Dollar/Yen JPY=D3 105.9620 105.8600 +0.00% +2.49% +105.9670 +0.0000
Euro/Yen EURJPY= 128.92 128.79 +0.10% +1.58% +128.9400 +128.7900
Dollar/Swiss CHF=EBS 0.9068 0.9065 +0.03% +2.50% +0.9070 +0.9065
Sterling/Dollar GBP=D3 1.4144 1.4143 +0.01% +3.54% +1.4146 +1.4131
Dollar/Canadian CAD=D3 1.2510 1.2515 -0.02% -1.74% +1.2519 +1.2510
Aussie/Dollar AUD=D3 0.7973 0.7968 +0.08% +3.66% +0.7977 +0.7960
NZ NZD=D3 0.7439 0.7443 -0.05% +3.59% +0.7447 +0.7433
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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