* Dollar supported by vaccine rollout, growth prospects
* French lockdown weighs on euro
* Yen at 1-year low vs dollar
* U.S. ISM, payrolls data next focus
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Julien Ponthus
LONDON, April 1 (Reuters) - Backed by a $2 trillion U.S.
government spending plan, the dollar consolidated its
first-quarter gains on Thursday, holding near multi-month highs
while a new lockdown in France weighed on the euro.
In early trades in Europe, the dollar index =USD stood at
93.286, close to a five-month high of 93.439 reached on
Wednesday.
The U.S. currency gained 3.57% against the basket of six
major currencies during the first quarter of 2021, its best
quarterly performance since 2018 with investors betting on a
swift and robust economic recovery.
The gains came as the euro, the biggest component in the
index, suffers from concerns the euro zone's economic recovery
is being hampered by a third wave of COVID-19 infections.
President Emmanuel Macron ordered France into its third
national lockdown and said schools would close for three weeks
while the currency bloc also lagged the United States in
vaccination programmes. "As long as the news flow on either side of the Atlantic is
more or less diametrically opposed there is really not much to
be said in support of the euro," Commerzbank analyst Antje
Praefcke wrote to her clients.
U.S. President Joe Biden announced his long awaited $2
trillion-plus job plan, including $621 billion to rebuild
infrastructure. The euro changed hands at $1.1720 EUR= , after hitting a
near five-month low of $1.1704. Against the British pound, the
common currency was up 0.08% after hitting a 13-month low of
0.85025 pound EURGBP=D4 .
The U.S. currency held firm against the yen after ending
March with its biggest monthly gains since November 2016.
The dollar traded at 110.77 yen JPY= , having risen to as
much as 110.97, its highest in a year.
As the U.S. dollar maintained its strength, the Australian
dollar dropped 0.67% to $0.7542 AUD=D4 , a low last seen in
late December.
The offshore Chinese yuan eased 0.3% to 6.582 to the dollar
CNH= , as data showed China's factory activity in March
expanded at the slowest pace in almost a year. While currency trading is expected to slow towards the
Easter holidays in many parts of the world, the dollar could
gain if key U.S. economic indicators surprise on the upside.
A survey by the Institute for Supply Management (ISM) on
Thursday is expected to show a further improvement in
manufacturing activity.
Economists expect Friday's U.S. job data to show an increase
of about 650,000 payrolls in March while the latest chatter in
the market is it could swing higher, and even top one million.
The ADP National Employment Report showed on Wednesday U.S.
private payrolls increased by 517,000 jobs last month, slightly
lower than market forecasts. In the crypto asset market, bitcoin maintained its firmness
over the past several days to trade at $58,721 BTC=BTSP .
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