FOREX-U.S. dollar climbs to one-year peak vs yen, index on track for best quarter since June 2018

* Dollar marks fresh 1-year high vs yen
* Euro hits 5-month low vs dollar
* ADP data shows increased hiring for February
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

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By Gertrude Chavez-Dreyfuss
NEW YORK, March 31 (Reuters) - The dollar hit a one-year
high versus the yen and multi-month peaks with other currencies
on Wednesday as investors bet that fiscal stimulus and
aggressive vaccinations will help the United States lead a
global pandemic recovery.
The dollar index, a gauge of its value against six major
currencies, however fell 0.2% to 93.075 =USD . But it was on
track to post its best quarter since June 2018 with gains of
3.4%.
The index rose as far as 93.439, the highest in almost five
months. It has climbed from close to 90 at the start of March,
on course for its best month since July 2019.
The greenback held its gains following data showing the U.S.
economy added more than 500,000 private sector jobs in February.
U.S. private payrolls increased by 517,000 jobs last month,
the ADP National Employment Report showed on Wednesday, slightly
lower than market forecasts. Data for February was revised up to
show 176,000 jobs added instead of the initially reported
117,000. "While ADP isn't a reliable gauge of how nonfarm payrolls
might fare, it paints an improving picture of the labor market,"
said Joe Manimbo, senior market analyst at Western Union
Business Solutions, in a research note.
Wall Street economists are forecasting U.S. non-farm
payrolls, due on Friday, of 647,000.
"Given markets' lofty expectations for March hiring, seen up
by 650,000, the dollar could fall prey to the buy the rumor of
good news and sell on the fact," he added.
The dollar set a one-year top of 110.97 yen JPY=EBS and
was last up 0.3% to 110.625 yen. For the quarter, the dollar
posted gains of about 7%, on pace for its best performance since
December 2016.
The euro, meanwhile, fell to a five month low versus the
dollar at $1.1704, but was last up 0.3% at $1.1746 EUR=EBS . On
the quarter, the euro was on track for its weakest showing since
September 2019.
The dollar has been supported overall by a surge in U.S.
bond yields, which make the currency more attractive as an
investment.
The yield on the benchmark 10-year Treasury note US10YT=RR
jumped to a one-year high of 1.776% on Tuesday.
"With U.S. Treasuries meaningfully under pressure yesterday,
the environment is clearly supportive for the U.S. dollar,
particularly as Europe continues to battle with a third Covid
wave," said ING's global head of markets, Chris Turner, in a
note to clients.
Also later on Wednesday, U.S. President Joe Biden is set to
outline how he intends to pay for a $3 trillion to $4 trillion
infrastructure plan, after earlier this week saying 90% of adult
Americans would be eligible for vaccination by April 19.
In the cryptocurrency market, bitcoin briefly topped
$59,000, trying to close the distance to the record peak at
$61,781.83 set earlier this month.
PayPal Holdings PYPL.O said Tuesday it launched a
"Checkout with Crypto" service, which will allow U.S. users to
use their cryptocurrency holdings to pay online merchants
worldwide, adding to the growing global acceptance of the
digital tokens on both Wall Street and Main Street.

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