* Benchmark Treasury yield rose past 1.7% to new 13-month
peak
* Yen buoyed by report BOJ to be more flexible with yield
target
* Bitcoin sinks toward $56,000 after topping $60,000
overnight
By Kevin Buckland
TOKYO, March 19 (Reuters) - The safe-haven U.S. dollar
strengthened again on Friday, supported by higher Treasury
yields and falling stock markets, as investors continued to
digest the Federal Reserve's pushback against expectations of
any early interest-rate hikes.
The dollar index =USD added 0.1%, extending a 0.5% jump
from Thursday that was the most in two weeks.
The benchmark U.S. 10-year yield US10YT=RR climbed to a
more than one-year peak of 1.754% overnight before easing to
1.715%, while Asian stocks followed Wall Street lower.
The Federal Open Market Committee (FOMC) pledged this week
to press on with aggressive monetary stimulus, saying a
near-term spike in inflation would prove temporary amid their
projections for the strongest U.S economic growth in nearly 40
years.
The next focus for the currency market will be the Bank of
Japan's policy decision Friday, accompanied by results of a
comprehensive policy review.
"After some navel gazing," bond investors "concluded that
the Fed is not (posing) any challenges or discomfort for
longer-dated UST yields to keep pushing higher," National
Australia Bank's senior FX strategist Rodrigo Catril wrote in a
client note.
"The USD regained its mojo."
The greenback gained 0.1% to 109.04 yen JPY=EBS , adding to
small gains overnight.
The yen got some support from a Nikkei report on Thursday
that the BOJ was expected to slightly widen an implicit band in
which it allows long-term interest rates to move around its 0%
target. The euro EUR=EBS slipped 0.1% to $1.1908, extending
Thursday's 0.5% tumble.
While AstraZeneca (NASDAQ:AZN) vaccinations are poised to restart in
Germany, France and other European nations, the region's growth
outlook was dinged as Paris went into a month-long lockdown.
The British pound GBP=D3 sank 0.2% to $1.3903 after
weakening 0.3% a day earlier, as the Bank of England warned the
outlook for Britain's recovery remained unclear, dampening some
speculation the bank would signal a more confident outlook.
In the cryptocurrency market, bitcoin BTC=BTSP weakened to
around $56,703 in early Asian trading, seesawing after breifly
topping $60,000 again overnight.
It had surged to a fresh record high of $61,781.83 on
Saturday, after more than doubling since the start of the year.
"Bitcoin is a momentum trade and it feels like it could go a
lot further," said Edward Moya, a New York-based senior market
analyst at online FX broker OANDA.
"Is it a bubble? Yes. But it can easily go to $100,000
before it comes crashing down."
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Currency bid prices at 116 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1906 $1.1916 -0.08% -2.55% +1.1921 +1.1904
Dollar/Yen JPY=D3 109.0650 108.9100 +0.11% +5.56% +109.0920 +108.9300
Euro/Yen EURJPY= 129.85 129.76 +0.07% +2.31% +129.9200 +129.7700
Dollar/Swiss CHF=EBS 0.9282 0.9274 +0.09% +4.92% +0.9283 +0.9273
Sterling/Dollar GBP=D3 1.3901 1.3932 -0.19% +1.79% +1.3931 +1.3900
Dollar/Canadian CAD=D3 1.2502 1.2486 +0.14% -1.81% +1.2505 +1.2484
Aussie/Dollar AUD=D3 0.7734 0.7762 -0.32% +0.57% +0.7762 +0.7736
NZ NZD=D3 0.7154 0.7168 -0.17% -0.35% +0.7171 +0.7155
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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