* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
TOKYO, March 1 (Reuters) - The Australian dollar and other
riskier currencies recovered some lost ground against the U.S.
dollar on Monday, after suffering their biggest plunges in a
year at the end of last week amid a hefty sell-off in global
bond markets.
The greenback =USD weakened broadly early in Asia trade,
but barely enough to trim its biggest surge since June from
Friday.
Currency markets have taken cues from the global bond
market, where yields have surged in anticipation of an
accelerated economic recovery.
The aggressive bond selling implies a bet that global
central bankers will need to tighten policy much earlier than
they have so far been forecasting. Equities and commodities have also sold off as the debt rout
unsettles investors.
"USD direction is likely to hinge on not only the direction,
but also the pace, of global bond moves," Commonwealth Bank of
Australia strategists wrote in a research note.
Bond moves are trumping economic data as the driver of
foreign-exchange markets, with yields moving "well in advance"
of economic fundamentals, they said.
"The risk is tilted to a firmer USD this week because we
doubt central banks will intervene in any meaningful way yet."
The Aussie AUD= jumped 0.6% to $0.7754 early in the Asian
session on Monday, following a 2.1% plunge on Friday.
The New Zealand dollar NZD=D3 strengthened 0.6% to
$0.7270, recovering some of Friday's 1.9% slide.
The euro EUR=EBS gained 0.2% to $1.20910, after dropping
0.9% at the end of last week, the most since April.
The dollar slipped 0.1% to 106.415 yen JPY=EBS , but still
near the six-month high of 106.69 touched Friday.
Federal Reserve Chair Jerome Powell, who last week repeated
the U.S. central bank will look through any near-term inflation
spike and tighten policy only when the economy is clearly
improving, will speak on the economy this Friday, the same day
as the usually closely watched monthly payrolls data is due.
The Reserve Bank of Australia will hold its monthly policy
meeting on Tuesday, and markets are widely expecting it to
reinforce its forward guidance for three more years of near-zero
rates, while also addressing the market dislocation.
Currency bid prices at 050 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2095 $1.2070 +0.22% -1.00% +1.2102 +1.2070
Dollar/Yen JPY=D3 106.4420 106.5700 -0.15% +3.02% +106.5670 +106.4000
Euro/Yen EURJPY= 128.74 128.60 +0.11% +1.43% +128.8000 +128.6000
Dollar/Swiss CHF=EBS 0.9075 0.9086 -0.13% +2.57% +0.9086 +0.9060
Sterling/Dollar GBP=D3 1.3983 1.3923 +0.45% +2.37% +1.3990 +1.3931
Dollar/Canadian CAD=D3 1.2693 1.2740 -0.35% -0.31% +1.2732 +1.2690
Aussie/Dollar AUD=D3 0.7747 0.7799 -0.64% +0.73% +0.7757 +0.7706
NZ NZD=D3 0.7271 0.7231 +0.57% +1.27% +0.7280 +0.7234
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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