* Dollar slips from four-month high, following U.S. Treasury
yields
* Sterling falls against euro, USD
(Adds analyst comment, new throughout)
By Jessica DiNapoli and Saikat Chatterjee
NEW YORK, March 22 (Reuters) - The U.S. dollar slipped from
four-month highs against a basket of currencies on Monday,
following a small dip in U.S. Treasury yields, as investors
wagered that the U.S. economy would recover and inflation would
rise.
The dollar index fell about 0.25% at 91.86 =USD , following
last week's gain of 0.5%.
Over the weekend, Turkish President Tayyip Erdogan's shock
replacement of a hawkish central bank governor with a critic of
high interest rates dragged the lira down as much as 15%
TRYTOM=D3 to 8.485 against the dollar. The yield on U.S. Treasuries fell on Monday and was last
down at 1.6981% but remained near one-year highs as investors
bet on an economic recovery. US10YT=RR Yields had
risen after the Fed last week said the U.S. economy was on track
for strong growth. "The bond market sell-off has somewhat eased," said Edward
Moya, senior market analyst at OANDA in New York. "It should
provide a little bit of calm amid the dollar and its major
partners."
He added that the moves in Turkey will be isolated and in
the near term would put a "little bit of fear in the emerging
markets trade."
Turkey's shock decision to replace its hawkish central bank
governor also supported the dollar's safe-haven appeal.
Markets have been slow to catch on to the rising dollar
theme in recent weeks as investors had bet that a global
economic recovery would prompt buying of riskier currencies.
But rising U.S. Treasury yields US10YT=RR and the prospect
of more lockdowns in several euro zone countries has driven a
widespread unwinding of short dollar bets.
As a result, traders cut their long euro bets to the lowest
levels since June 2020 while net positions against the Japanese
yen flipped into positive territory for the first time in more
than a year, latest positioning data showed. Worries that Turkish market upheaval would spill into others
also supported the dollar, especially against currencies like
the Australian dollar and Norway's crown.
The Turkish lira TRYTOM=D3 stood at 7.875 per dollar, down
more than 10% from its Friday close.
The pound slipped against the dollar as investors focused on
broader currency market drivers and the European Union's threat
to impose a ban on vaccine imports to Britain. bid prices at 10:16AM (1416 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 91.9000 92.0920 -0.20% 2.133% +92.1550 +91.7450
Euro/Dollar EUR=EBS $1.1915 $1.1906 +0.08% -2.48% +$1.1932 +$1.1870
Dollar/Yen JPY=D3 108.7900 108.8650 -0.08% +5.31% +108.9500 +108.6500
Euro/Yen EURJPY= 129.62 129.58 +0.03% +2.13% +129.8300 +129.0500
Dollar/Swiss CHF=EBS 0.9253 0.9290 -0.40% +4.58% +0.9311 +0.9241
Sterling/Dollar GBP=D3 $1.3824 $1.3859 -0.21% +1.23% +$1.3876 +$1.3819
Dollar/Canadian CAD=D3 1.2521 1.2500 +0.18% -1.66% +1.2534 +1.2474
Aussie/Dollar AUD=D3 $0.7736 $0.7745 -0.02% +0.66% +$0.7747 +$0.7689
Euro/Swiss EURCHF= 1.1023 1.1059 -0.33% +2.00% +1.1063 +1.1023
Euro/Sterling EURGBP= 0.8617 0.8584 +0.38% -3.58% +0.8627 +0.8576
NZ NZD=D3 $0.7165 $0.7168 -0.03% -0.21% +$0.7182 +$0.7136
Dollar/Dollar
Dollar/Norway NOK=D3 8.5135 8.5175 -0.09% -0.90% +8.5880 +8.5050
Euro/Norway EURNOK= 10.1482 10.1538 -0.06% -3.05% +10.2085 +10.1200
Dollar/Sweden SEK= 8.5309 8.5386 +0.01% +4.08% +8.5780 +8.5041
Euro/Sweden EURSEK= 10.1661 10.1655 +0.01% +0.89% +10.1905 +10.1459
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World FX rates https://tmsnrt.rs/2RBWI5E
FX positions https://tmsnrt.rs/312oizv
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