* Dollar hits new highs against euro, Japanese yen
* Commodity currencies sell off on risk aversion
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
(Adds comments, updates prices and milestones)
By Kevin Buckland and Sagarika Jaisinghani
TOKYO, March 5 (Reuters) - The dollar hit multi-month highs
against the euro and the yen on Friday after Federal Reserve
Chair Jerome Powell did not express concern about a recent
sell-off in bonds while sticking to his stance to keep interest
rates low for a long time.
While Powell did stick with dovish rhetoric overall, he said
the sell-off in Treasuries was not "disorderly" or likely to
push long-term rates so high the Fed might have to intervene
more forcefully, reigniting a sell-off in Treasuries.
He also reiterated a commitment to maintain ultra-easy
monetary policy until the economy is "very far along the road to
recovery."
"Markets are listening to the central banks and if they are
going to be on hold for a long time, that means long-term
inflation is going to be higher and that's why you're seeing the
bond and equity markets sell off," said Commonwealth Bank of
Australia currency analyst Joseph Capurso. "The currency markets
are reacting to the increase in volatility in both those
markets."
The euro EUR=EBS slipped 0.2% to a three-month low of
$1.19515 following a 0.7% slump overnight.
The dollar hit an eight-month high of 108.035 yen JPY=EBS
earlier in the session before giving up much of its gains.
Japanese Finance Minister Taro Aso declined to comment on
the yen's decline when asked about how the depreciation would
affect the economy. The dollar index =USD hit a three-month high and last
stood at 91.672 in the Asian session after gaining 0.7% on
Thursday
The dollar's gains came as the benchmark 10-year Treasury
yield US10YT=RR jumped back above 1.5%, rising as high as
1.584% in Asia. Last week, it soared to a one-year peak of
1.614%. Impending U.S. fiscal stimulus is adding fuel to
expectations of higher inflation, as the accelerating roll-out
of COVID-19 vaccines boosts confidence in an economic recovery.
Riskier currencies including the Australian and New Zealand
dollars slid along with stocks as investor sentiment again
turned sour. MKTS/GLOB
"Once the bond rout comes to an end, once the volatility
fades away, the commodity currencies (the Aussie and the kiwi)
are going to be able to climb back up because commodity prices
aren't falling," said Capurso at CBA.
The Aussie AUD=D3 weakened 0.3% to $0.7705, extending
Thursday's 0.7% drop. The kiwi NZD=D3 fell 0.2%, adding to its
0.8% slide overnight.
In the cryptocurrency market, bitcoin BTC=BTSP fell 2.3%
to $47,272.65. Ether ETH=BTSP dropped 3.6% to $1,483.43.
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Currency bid prices at 0359 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1963 $1.1973 -0.08% -2.09% +1.1977 +1.1952
Dollar/Yen JPY=D3 107.9450 107.9400 +0.01% +4.51% +108.0050 +107.8250
Euro/Yen EURJPY= 129.13 129.25 -0.09% +1.74% +129.3100 +128.9000
Dollar/Swiss CHF=EBS 0.9286 0.9288 -0.02% +4.97% +0.9296 +0.9286
Sterling/Dollar GBP=D3 1.3903 1.3897 +0.06% +1.79% +1.3906 +1.3868
Dollar/Canadian CAD=D3 1.2653 1.2667 -0.09% -0.62% +1.2694 +1.2655
Aussie/Dollar AUD=D3 0.7714 0.7721 -0.07% +0.29% +0.7727 +0.7688
NZ NZD=D3 0.7173 0.7186 -0.17% -0.10% +0.7193 +0.7157
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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