FOREX-Dollar rises to one-month high; riskier currencies fall as shares falter

* Dollar index at one-month high
* Aussie and Kiwi dollars fall
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

LONDON, March 2 (Reuters) - The dollar rose to its highest
level in a month against its basket on Tuesday and riskier
currencies fell back, as underlying concerns about rising bond
yields drove investors back into safe-haven assets.
Rising yields have spooked markets in recent weeks, with
participants worried that an economic recovery from the impact
of COVID-19, combined with fiscal stimulus, could cause a jump
in inflation from pent-up consumer demand when lockdowns end.
Riskier currencies including the Australian and New Zealand
dollars recovered some recent losses on Monday, as yields fell
back and stock markets rallied. But they resumed their decline
on Tuesday. The dollar rose to its highest in a month versus a basket of
currencies, up 0.3% on the day at 91.326 at 0808 GMT, in its
fourth straight session of gains =USD .
The Swiss franc was at its lowest since November 2020
against the dollar CHF=EBS . Dollar-Swiss has been rising since
early January and gained some 3.8% so far in 2021.
"With low-yielders mostly bearing the brunt of any equity
rally for now, even if risk assets move back into positive area
today later today, USD may still prove its resilience," wrote
ING strategists in a note to clients.
China's banking and insurance regulator expressed wariness
of the risk of bubbles bursting in foreign markets, and said
Beijing is studying measures to manage capital inflows to
prevent turbulence in the domestic market. The New Zealand dollar was down around 0.6%, at 0.7222
versus the U.S. dollar NZD=D3 .
The Australian dollar was down 0.3% at 0.7747 versus the
U.S. dollar AUD=D3 , after the Reserve Bank of Australia
re-committed to keeping interest rates at historic lows.
"We continue to believe, though, that the strengthening
global recovery boosted by continued loose monetary and fiscal
policies will remain supportive for higher commodity prices and
a stronger Australian dollar in the year ahead," wrote MUFG
currency analyst, Lee Hardman.
The euro fell, after top European Central Bank officials
sounded alarm over the rises in bond yields.
Policymaker Francois Villeroy de Galhau said on Tuesday that
some of the recent rises were unwarranted and that the ECB must
push back using the flexibility embedded in its bond purchase
programme. ECB Vice President Luis de Guindos said the ECB had the
flexibility to counter any undesired rise in yields.
Market participants said that the ECB and the U.S. Federal
Reserve were taking divergent tones on rising bond yields, with
the Fed appearing less concerned. At 0842 GMT, the euro was down 0.3% at $1.20125, having hit
its lowest in nearly a month EUR=EBS .
A flash estimate of euro zone inflation for February is due
at 1000 GMT.
Elsewhere, bitcoin was a touch lower, down 1% at around
$49,000 at 0834 GMT, having recovered some recent losses in the
previous session BTC=BTSP .

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