FOREX-Dollar strengthens as investors turn cautious, market waits for Powell testimony

* Dollar index rises as markets turn cautious
* Kiwi dollar drops 1.8% on housing market curbs
* Turkish lira stabilises
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

(Adds trader quote, new throughout)
By Jessica DiNapoli and Elizabeth Howcroft
NEW YORK, March 23 (Reuters) - The dollar rose against a
basket of most major currencies on Tuesday, while yields on U.S.
Treasuries dipped, as fears about the lasting impact of the
coronavirus crisis resurfaced.
The dollar index was last up 0.38% at 92.1330, reversing
course from Monday when it dipped but hovered below four-month
highs. =USD
Yields on U.S. Treasuries also slipped again, at 1.654%
US10YT=RR .
"We're finally coming to the realization that the pandemic
has not been fought in a global united way and it's starting to
bite us," said Juan Perez, a currency trader and strategist at
Tempus Inc. "This (U.S.) administration has shown it's committed
to inoculations. That whole safe haven role the dollar plays for
everyone, is holding."
The dollar index has gained around 2.4% so far in 2021, as
investors see the relatively quick rollout of COVID-19 vaccines
and stimulus spending in the United States as boosting economic
growth.
Investors will be listening to Congressional testimony by
U.S. Federal Reserve Chair Jerome Powell and Treasury Secretary
Janet Yellen later in the day for hints about their tolerance
for rising yields, which could determine the future direction
for the dollar.
A two-year Treasury auction later on Tuesday will also be
closely watched.
But there was a wary tone in global markets, with most
equities in the red.
Contributing to market caution was a third wave of the
COVID-19 pandemic in Europe. Germany is extending its lockdown
and urging citizens to stay at home for five days over the
Easter holidays, Chancellor Angela Merkel said. Euro-dollar was down 0.44% at $1.1879 EUR=EBS .
The New Zealand dollar fell on new measures to cool the
housing market, dropping to a three-month low against the U.S.
dollar NZD=D3 .
It was down about 1.8% on the day at 0.703.
The drop was triggered by the New Zealand government
introducing measures to curb speculation on its red-hot housing
market, where house prices have risen 23% in 12
months. The Australian dollar - considered a liquid
proxy for risk - also took a hit and was down 0.81% at 0.768
versus the U.S. dollar AUD=D3 . Turkey's lira stabilized somewhat, having plunged 7.5% on
Monday after President Tayyip Erdogan sacked the hawkish central
bank chief. It was up around 1.22% against the U.S. dollar, with
the pair changing hands at 7.898, compared with Monday's low of
8.485 TRYTOM=D3 .

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World FX rates https://tmsnrt.rs/2RBWI5E
Turkey Lira https://tmsnrt.rs/3lHvBpB
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