(Revises throughout, updates prices, adds action in Canadian dollar, emerging markets)
* Dollar rises after dipping to lowest since March 3
* Euro gives up some gains from vaccination news
* British pound retreats from testing $1.40
* Oil drop on India coronavirus surge hits Mexico's peso
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By David Henry
NEW YORK, April 20 (Reuters) - The dollar rose on Tuesday as interest rates in the United States moved
in a tight range and a drop in oil prices hit crude-linked currencies.
After touching its lowest level in nearly seven weeks, the dollar index against major currencies =USD
rose 0.2% to 91.204 in the afternoon in New York.
The euro EUR=EBS was flat at $1.2033 after rising nearly 0.4% on the outlook for increasing
vaccinations. The British pound GBP=D3 fell 0.4% to $1.3937 after it backed off from touching $1.40 and
gaining 1% on Monday.
The dollar has fallen in April as U.S. bond yields retreated from the 14-month highs of 1.776% reached
last month. The currency and yield declines have come as evidence mounted that the Federal Reserve would be
slower about tightening monetary policy than it had appeared to the market, analysts said.
The 10-year Treasury yield US10YT=RR slipped to 1.57% after trading in a narrow range around 1.60%.
The currency and interest rate markets could be relatively calm for another few weeks as the Fed and the
European Central Bank each take their time about adjusting their rate policies, said Mazen Issa, senior
currency strategist at TD Securities.
"There really isn't a strong catalyst in either direction this month to really break us out of ranges,"
Issa said.
Some encouragement for the euro came from the announcement that the European Union has secured an
additional 100 million doses of the COVID-19 vaccine produced by BioNTech 22UAy.DE and Pfizer PFE.N .
The vaccination news suggests that the pace of Europe's recovery from the pandemic will begin to catch
up with the United States and its story of faster growth, Issa said.
"The FX market is moving away from this idea of full-on U.S. exceptionalism to being in a little bit
more in limbo now," he said.
Against the Japanese yen, the dollar edged up to 108.09 after having broken below 108 for the first time
since March 5.
Oil-linked currencies took a hit when crude prices fell 1% on fears that surging coronavirus infections
in India will bring restrictions and reduce demand for oil. The Canadian dollar, CAD=D3 which had been steady ahead of a Wednesday meeting of the Bank of Canada,
then weakened the most in nearly two months to 1.2620 against the dollar, or 79.24 U.S. cents. Norwegian crown NOK=D3 retreated from its strongest levels against the dollar since 2018.
Mexico's peso MXN= also weakened with oil after hovering around three-month highs on the strength of
carry trades in high-yield emerging market currencies bolstered by recent low volatility. Bitcoin BTC=BTSP rose 1% to $56,211 on Tuesday afternoon.
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Currency bid prices at 3:17PM (1917 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 91.2040 91.0490 +0.18% 1.359% +91.2820 +90.8560
Euro/Dollar EUR=EBS $1.2033 $1.2036 -0.02% -1.52% +$1.2080 +$1.2023
Dollar/Yen JPY=EBS 108.0900 108.1500 -0.06% +4.61% +108.5450 +107.9750
Euro/Yen EURJPY= 130.07 130.14 -0.05% +2.48% +130.9600 +130.0000
Dollar/Swiss CHF=EBS 0.9161 0.9153 +0.09% +3.55% +0.9169 +0.9136
Sterling/Dollar GBP=D3 $1.3937 $1.3989 -0.37% +2.02% +$1.4008 +$1.3926
Dollar/Canadian CAD=D3 1.2609 1.2531 +0.64% -0.97% +1.2623 +1.2479
Aussie/Dollar AUD=D3 $0.7721 $0.7755 -0.42% +0.38% +$0.7815 +$0.7709
Euro/Swiss EURCHF= 1.1023 1.1016 +0.06% +2.00% +1.1047 +1.1010
Euro/Sterling EURGBP= 0.8633 0.8605 +0.33% -3.40% +0.8643 +0.8603
NZ NZD=D3 $0.7171 $0.7180 -0.18% -0.19% +$0.7229 +$0.7165
Dollar/Dollar
Dollar/Norway NOK=D3 8.3550 8.2965 +0.74% -2.67% +8.3650 +8.2520
Euro/Norway EURNOK= 10.0550 9.9866 +0.68% -3.94% +10.0615 +9.9532
Dollar/Sweden SEK= 8.4358 8.3980 +0.41% +2.92% +8.4437 +8.3615
Euro/Sweden EURSEK= 10.1515 10.1099 +0.41% +0.75% +10.1583 +10.0990
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World FX rates https://tmsnrt.rs/2RBWI5E
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