* Riskier assets buoyed after Fed's Powell says low rates to
stay
* Kiwi rallies to 3-year high after initial dip on RBNZ
decision
* Bitcoin retakes $50,000 following steep plunge from record
high
By Stanley White and Kevin Buckland
TOKYO, Feb 24 (Reuters) - The U.S. dollar slipped to
three-year lows against the British pound and antipodean
currencies on Wednesday as the promise of extended easy monetary
conditions globally boosted investor appetite for riskier
assets.
The New Zealand dollar dipped briefly before rallying to the
highest since April 2018 after the country's central bank
emphasised patience over the timing of exiting ultra-easy policy
settings.
U.S. Federal Reserve Chair Jerome Powell reiterated on
Tuesday that interest rates will remain low and the Fed will
keep buying bonds to support the U.S. economy, which many
analysts and investors view as a long-term negative factor for
the greenback.
Money flowed from safe havens like the dollar toward
currencies that are expected to benefit from a pick-up in global
trade, and to countries like Britain that are bouncing back
quickly from the coronavirus pandemic.
"Signs of economic recovery are lifting commodities prices,
which in turn supports currencies of commodities exporters,"
such as the Australian dollar, said Junichi Ishikawa, foreign
exchange strategist at IG Securities.
"Risk appetite has improved a lot, and this leaves the
dollar at a big disadvantage."
The dollar index =USD against a basket of six major
currencies was at 90.111, hovering near the six-week low of
89.941 it reached overnight.
The Australian dollar AUD=D3 , which tends to benefits from
rising metal and energy prices, jumped to a three-year high of
$0.7945 before paring gains to trade 0.1% stronger at $0.7914.
The New Zealand dollar NZD=D3 rose as high as $0.7384,
following an knee-jerk dip, after the Reserve Bank of New
Zealand (RBNZ) expressed some caution about the outlook,
potentially disappointing traders who expected the monetary
authority to acknowledge a recent improvement in economic data.
"Financial markets have been flirting with the idea that the
RBNZ could tighten monetary policy next year, and today's
statement will have discouraged those holding that view,"
Westpac analyst Dominick Stephens wrote in a client note.
"The RBNZ wants to see the whites of the eyes of inflation
and employment before it shifts monetary policy."
The British pound GBP=D3 rose 0.3% to $1.4158 after
earlier touching $1.4295 for the first time since April 2018.
The outlook for sterling has brightened as investors cheer
Britain's rapid coronavirus vaccination programme and its plans
to ease lockdown restrictions on economic activity.
The euro EUR=D3 bought $1.21495, close to the one-month
high of $1.2180 set overnight.
The dollar managed to rise against other traditional haven
currencies, adding 0.2% to 105.485 Japanese yen JPY=EBS and
hitting an almost three-month high against the Swiss franc
CHF=EBS .
The Fed's Powell pushed back against suggestions that loose
monetary policy will lead to runaway inflation and financial
bubbles, which have emerged as two important worries this year,
because there is growing scepticism about the rapid pace of
gains in global stock markets. For economies that have limited disruptions caused by the
coronavirus outbreak, their central bankers now face questions
of when to start tightening policy, which makes the dollar look
less attractive, some analysts say.
In the cryptocurrency market, bitcoin BTH=BTSP recovered
to trade above $50,000 following a sharp plunge this week from
its record high of $58,354.14 reached Sunday.
Square Inc SQ.N said on Wednesday it had invested $170
million in the digital asset in the fourth quarter, but some
analysts still argue that bitcoin's recent surge was excessive.
Rival digital currency ether ETH=BTSP rebounded from its
own steep sell-off to trade up slightly at $1,618.
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Currency bid prices at 442 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2150 $1.2150 +0.00% -0.56% +1.2166 +1.2143
Dollar/Yen JPY=D3 105.4850 105.2600 +0.23% +2.14% +105.5220 +105.2400
Euro/Yen EURJPY= 128.17 127.86 +0.24% +0.98% +128.2700 +127.7800
Dollar/Swiss CHF=EBS 0.9065 0.9054 +0.12% +2.46% +0.9065 +0.9048
Sterling/Dollar GBP=D3 1.4162 1.4112 +0.38% +3.69% +1.4234 +1.4111
Dollar/Canadian CAD=D3 1.2577 1.2590 -0.08% -1.21% +1.2595 +1.2560
Aussie/Dollar AUD=D3 0.7911 0.7909 +0.03% +2.85% +0.7943 +0.7903
NZ NZD=D3 0.7360 0.7343 +0.26% +2.52% +0.7382 +0.7317
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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