FOREX-Dollar on back foot as market optimism lifts riskier currencies

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

By Iain Withers
LONDON, Feb 15 (Reuters) - The safe haven dollar started the
week pinned near two-week lows on Monday, as optimism about
COVID-19 vaccine rollouts and a planned $1.9 trillion U.S.
stimulus package drove up riskier currencies and stock markets
across Europe and Asia.
Among the gainers versus the weaker greenback, the British
pound broke $1.39 for the first time in nearly three years while
commodity currencies strengthened, including the South African
rand which hit a fresh one-year high. GBP=D3 ZAR=
The improved risk appetite was also reflected in equities,
with European indexes rising after Japanese stocks surged to a
more than 30-year high earlier in the day. Many financial markets in Asia remained closed on Monday for
Lunar New Year, while U.S. stock markets will be shut for
Presidents Day.
The dollar index =USD slipped 0.1%, close to last week's
low of 90.249 - a level unseen since Jan. 27.
Analysts at MUFG said the dollar could weaken further if
market optimism held.
"We believe there is plenty yet to go in the so-called
'reflation trade' with market participants under-estimating the
willingness of global policymakers to let the economy run hot
and fuel stronger than expected global growth through the
remainder of the year," the analysts said in a note.
Bitcoin BTC=BTSP remained volatile, retreating to as low
as $45,914.75 a day after reaching a record $49,714.66.
The world's most popular cryptocurrency had rallied 25% last
week, boosted by endorsements from Tesla TSLA.O and BNY Mellon
BK.N . The Chinese yuan reached its strongest level since June 2018
at 6.4010 per dollar in the offshore market. CNH=EBS
The euro EUR=EBS edged 0.2% higher to $1.21410, extending
last week's 0.6% advance.
The dollar rose a third of a percent to 105.28 yen
JPY=EBS , recovering some of the previous week's losses.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates https://tmsnrt.rs/2RBWI5E
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>