* Euro propped up by vaccination catch-up hopes
* Dollar loses traction as U.S. bond yields subdued
* Euro, yen at highest level vs dollar since early March
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Hideyuki Sano
TOKYO, April 20 (Reuters) - The dollar wallowed near a
six-week low against its peers on Tuesday as the euro led a
rally on the back of a brightening outlook for the region's
vaccination programme.
The dollar had already been losing traction as U.S. bond
yields have hovered below a 14-month peak touched last month,
reducing the greenback's yield attraction.
The euro rose to $1.2038 EUR= , having touched a six-week
high of $1.2048 on Monday while the British pound gained 1%
overnight, its second biggest daily gain so far this year, and
last stood at $1.3989 GBP=D4 .
Some analysts say support for the euro likely came from the
announcement that the European Union has secured an additional
100 million doses of COVID-19 vaccine by BioNTech 22UAy.DE and
Pfizer PFE.N . "Europe is really the main region which is going to see
accelerating vaccinations this quarter. And later in the year,
we will see accelerating vaccinations, broadly, in emerging
market economies," Zach Pandl, co-head of foreign exchange
strategy for Goldman Sachs in New York.
"The U.S. got ahead of the curve in the first quarter, but
other countries are going to be quickly catching up."
The dollar index dropped to 91.085 =USD , having lost 2.5%
from its five-month peak hit last month.
The moves are the reverse of what was happening in the first
three months of the year when the dollar gained against the very
same major currencies as yields rose on U.S. Treasuries and
offered higher returns on the greenback.
Against the yen, the dollar fell to as low as 107.975 yen,
its weakest in more than six weeks, and last traded at 108.15
JPY= .
The 10-year U.S. Treasuries yield hit a one-month low of
1.529% last week. Though it ticked up to 1.605% by Monday it
stood well below its March peak of 1.776%, when investors
speculated the Federal Reserve could tone down its dovish policy
guidance.
"One of the probably most important developments in macro
markets over the last month has been a stability in U.S. rate .
That also opens up room for dollar weakness against a broad set
of currencies," said Goldman's Pandl.
The Australian dollar held firm at $0.7769 AUD=D4 after
hitting a one-month high of $0.7784 on Monday. The offshore
Chinese yuan firmed to 6.5075 per dollar CNH= , near its
highest level in almost one month.
Gold also hit a 7-week high of $1,790 per ounce on Monday
and last stood at $1,770.6 XAU= .
Bitcoin changed hands at $54,122 BTC=BTSP , down 1.5% after
four straight days of losses.
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