FOREX-Dollar at three-week lows as Treasury yields subdued

    * Graphic: World FX rates

 (Adds comments from Fed's Powell and Kaplan, Beige Book,
analyst comment, updates prices)
    By Karen Brettell
    NEW YORK, April 14 (Reuters) - The dollar dipped to
three-week lows on Wednesday as Treasury yields held below
recent highs, reducing the relative attractiveness of the U.S.
    The dollar has gained this year as Treasury yields rose on
expectations of faster growth and higher inflation. That trade
has paused this month, however, with yields stabilizing below
one-year highs reached last month.
    “The whole pro dollar trade is based upon the yield story
and given the fact that the yield story has backed off the
highs, the dollar has pretty much done the same thing,” said
Boris Schlossberg, managing director of FX strategy at BK Asset
Management in New York.
    “Until the bond market gets the heebie-jeebies over the
inflation fears again, I think the long dollar position remains
under assault,” he said.
    Treasury yields edged higher on Wednesday but remained lower
on the week.
    The dollar index fell to as low as 91.57, the lowest
since March 18, and was last at 91.68, down 0.11% on the day.
    The euro gained 0.21% to $1.1971. The greenback
fell 0.13% to 108.92 Japanese yen.
    "The relative stability of yields this week has seen profit
taking weigh down the Greenback," Ronald Simpson, Managing
Director, Global Currency Analysis for Action Economics said in
a report.
    Data on Tuesday showed that U.S. consumer prices rose by the
most in more than 8-1/2 years in March, but it wasn’t enough to
change expectations that the Federal Reserve will hold rates
near zero for years to come.
    Fed Chair Jerome Powell said Wednesday that the U.S. central
bank will reduce its monthly bond purchases before it commits to
an interest rate increase, clarifying the order of monetary
policy changes that are still months if not years in the future.

    Dallas Fed President Robert Kaplan also said that it will be
"a while" before the United States reaches full employment, even
as he repeated his view that the Fed should begin to withdraw
support from the economy sooner than most of his colleagues do.

    The U.S. economic recovery accelerated to a moderate pace
from late February to early April, the Federal Reserve reported
on Wednesday in its latest "Beige Book."
    The next major U.S. economic release will be retail sales
for March on Thursday.
    The New Zealand dollar rose to a three-week high of $0.71220
 after the country's central bank held its official
interest rate and asset purchase program steady, as expected.

    Sterling hit a one-week high, supported by the
speed of Britain's vaccine rollout and recovering from a dip the
previous day that was triggered by the resignation of the Bank
of England's chief economist.
    In cryptocurrencies, bitcoin fell from record
highs as cryptocurrency exchange Coinbase Global Inc
was valued at almost $100 billion in a Nasdaq debut.

    Bitcoin was last down 1.77% on the day at $62,423, after
earlier reaching a record $64,895.
    Currency bid prices at 3:10PM (1910 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
 Dollar index                 91.6770        91.7950     -0.11%         1.885%        +91.8230    +91.5710
 Euro/Dollar                  $1.1971        $1.1949     +0.21%         -2.01%        +$1.1987    +$1.1940
 Dollar/Yen                   108.9200       109.1000    -0.13%         +5.49%        +109.0900   +108.8100
 Euro/Yen                     130.38         130.30      +0.06%         +2.73%        +130.5800   +130.0500
 Dollar/Swiss                 0.9229         0.9206      +0.24%         +4.31%        +0.9234     +0.9187
 Sterling/Dollar              $1.3780        $1.3753     +0.20%         +0.87%        +$1.3809    +$1.3751
 Dollar/Canadian              1.2528         1.2534      -0.04%         -1.61%        +1.2576     +1.2500
 Aussie/Dollar                $0.7725        $0.7644     +1.07%         +0.44%        +$0.7738    +$0.7635
 Euro/Swiss                   1.1046         1.0997      +0.45%         +2.21%        +1.1060     +1.0996
 Euro/Sterling                0.8685         0.8688      -0.03%         -2.82%        +0.8698     +0.8670
 NZ                           $0.7136        $0.7057     +1.14%         -0.61%        +$0.7150    +$0.7048
 Dollar/Norway                8.4010         8.4760      -0.96%         -2.24%        +8.4700     +8.3840
 Euro/Norway                  10.0585        10.1208     -0.62%         -3.90%        +10.1290    +10.0383
 Dollar/Sweden                8.4693         8.5099      -0.29%         +3.33%        +8.5148     +8.4519
 Euro/Sweden                  10.1403        10.1694     -0.29%         +0.63%        +10.1749    +10.1185
 (Additional reporting by Saikat Chatterjee in London; Editing
by Kirsten Donovan and Nick Zieminski)