* Dollar hits 3-week low vs yen, 4-week trough on euro
* Dip in U.S. yields undermine dollar's yield attraction
* Kiwi, Singapore dollar ticks up after cen bank stands pat
* Bitcoin at record high ahead of Coinbase IPO
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Hideyuki Sano
TOKYO, April 14 (Reuters) - The dollar fell to multi-week
lows against the euro and the yen on Wednesday, after an uptick
in a U.S. consumer price gauge did not spark wider fears about
accelerating inflation and the Federal Reserve's tapering,
pushing down U.S. bond yields.
The dollar ticked down 0.2% to 108.80 yen JPY= , touching
its lowest level in three weeks, down about 2 percent from a
one-year peak hit at the end of last month.
The euro popped up 0.1% to $1.1960 EUR= , hitting its
highest level since mid-March, as it extended a rally from a
five-month low of $1.1704 set on March 31.
Against the Swiss franc, the U.S. currency slipped to 0.9201
franc CHF= , near its lowest levels in six weeks.
While the dollar was stuck near its familiar ranges against
most other currencies, the dollar's index against a basket of
six major units fell to as low as 91.724 =USD , its lowest
since March 22.
The greenback's fall came as U.S. bond yields dipped, thus
reducing the currency's yield attraction, as solid demand for a
30-year bond auction trumped rises in consumer inflation.
The 10-year U.S. Treasuries yield dipped to 1.620%
US10YT=TWEB , also its lowest levels since late March.
The U.S. consumer price index jumped 0.6% in March versus
the previous month, the largest gain since August 2012, and rose
2.6% from a year earlier, both 0.1 percentage point above market
expectations.
The core CPI, which excludes volatile foods and energy, was
also a tad stronger than expected, with a year-on-year increase
of 1.6%. "Inflation has been expected to accelerate in the April-June
quarter. Although the latest reading was a bit stronger than
expected, it wasn't out of the blue," said Masafumi Yamamoto,
chief currency strategist at Mizuho Securities.
Speculation that firmer inflation could propel the Federal
Reserve to reduce its quantitative easing and low interest rates
earlier than it has pledged has been a major driver of the
dollar's rally in the first quarter.
"It seems like the markets have already priced in economic
normalisation as U.S. bond yields have risen considerably, with
the five-year yield almost reaching 1% at one point," said
Minori Uchida, chief currency strategist at MUFG Bank.
The U.S. central bank has said it will look through
temporary increases in inflation, and analysts expect it will
allow inflation to run hotter than previously expected before
raising rates.
Philadelphia Fed Bank President Patrick Harker said on
Tuesday it is unlikely that inflation will run out of control
this year. Elsewhere, the New Zealand dollar rose 0.4% to $0.7086
NZD=D4 after the country's central bank held its official
interest rate and asset purchase programme steady, widely as
expected.
The Singapore dollar rose 0.25% to S$1.3376 per U.S. dollar
SGD= after the Monetary Authority of Singapore (MAS) left its
exchange-rate policy settings unchanged. The Russian rouble RUBUTSTN=MCX gained about 2% overnight
after U.S. President Joe Biden called on Russian President
Vladimir Putin to reduce tensions between Russia and Ukraine.
Biden phoned Putin to propose they meet in a third country,
in a sign of concern about tensions spinning out of control in
the Ukraine crisis.
In cryptocurrencies, bitcoin hit a record high of $63,860.71
BTC=BTSP ahead of the listing of cryptocurrency platform
Coinbase on Nasdaq later in the day. Currency bid prices at 322 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1963 $1.1949 +0.12% -2.09% +1.1963 +1.1940
Dollar/Yen JPY=D3 108.8400 109.1000 -0.22% +5.40% +109.0500 +108.8100
Euro/Yen EURJPY= 130.19 130.30 -0.08% +2.58% +130.3500 +130.0500
Dollar/Swiss CHF=EBS 0.9196 0.9206 -0.08% +3.97% +0.9207 +0.9198
Sterling/Dollar GBP=D3 1.3768 1.3753 +0.14% +0.81% +1.3772 +1.3752
Dollar/Canadian CAD=D3 1.2541 1.2534 +0.06% -1.51% +1.2547 +1.2530
Aussie/Dollar AUD=D3 0.7661 0.7644 +0.21% -0.42% +0.7664 +0.7635
NZDollar/Dollar NZD=D3 0.7087 0.7057 +0.45% -1.30% +0.7089 +0.7048
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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(Editing by Jacqueline Wong and Kim Coghill)