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FOREX-Dollar pinned down by lower U.S. yields; inflation data in focus

    * Dollar taking breather after rally to multi-month peak
    * Analysts see room for further dollar gains this week
    * British pound flounders near two-month trough
    * Bitcoin back above $60,000, closing gap to record high

    By Kevin Buckland
    TOKYO, April 12 (Reuters) - The dollar languished near
2-1/2-week lows against major peers on Monday as a decline in
Treasury yields restrained the U.S. currency.
    The British pound sank toward a two-month low,
continuing its decline from a nearly three-year high reached in
February, with analysts pointing to blood clot concerns around
the AstraZeneca vaccine, which the U.K. has relied
heavily on for its aggressive vaccination programme.
    Bitcoin traded above $60,000, closing the gap to
its record high.
    Both the dollar and Treasury yields are taking something of
a breather after scaling multi-month peaks at the end of last
month, powered by bets that an accelerating U.S. recovery from
the pandemic will lift inflation faster than Federal Reserve
policymakers anticipate.
    While the Fed's repeated insistence that near-term price
pressures will prove transitory has soothed investors this
month, the dollar firmed on Friday following
stronger-than-expected producer price data, taking the edge off
the currency's worst week this year.
    The dollar index, which tracks the greenback against
a basket of six rivals, was little changed at 92.304 in Asia,
following a 0.9% slump last week. It dipped below 92 on Thursday
for the first time since March 23.
    The benchmark 10-year Treasury yield was at
1.6622% after dropping as low as 1.6170% last week. It had
surged to a more than one-year high of 1.7760% on March 30.
    "Key for the near-term outlook will be whether yields
continue to consolidate around these levels, or march higher,"
which would support the dollar, National Australia Bank
strategist Tapas Strickland wrote in a client note.
    "The broader thematic of a rapid rebound in the U.S. economy
on the back of an impressive vaccine rollout continues."
    Data on Friday showed the largest annual gain in 9-1/2 years
for U.S. producer prices, backing expectations for higher
inflation as the economy reopens amid an improved public health
environment and massive government funding.
    U.S. consumer price data will be released Tuesday.
    Fed Chair Jerome Powell speaks on Wednesday at the Economic
Club of Washington. In an interview on Sunday on CBS's "60
Minutes," Powell said the U.S. economy is at an "inflection
point" with expectations that growth and hiring will pick up
speed in the months ahead, but he also warned of risks stemming
from a hasty reopening.
    Against the euro, the dollar hovered near the lowest
since March 23 at $1.1901. It bought 109.66 yen, close to
 a two-week low below 109 reached on Thursday.
    "USD has some upside potential this week," Commonwealth Bank
of Australia strategist Kimberley Mundy wrote in a report.
    "Strong U.S. economic data will highlight the divergence
between the U.S.’s fast economic recovery and the more stunted
recoveries in other developed economies."
    The dollar can lift back toward 110 yen, while the euro has
scope to retrace most of that recent gains from its almost
five-month low near $1.17, she said.
    The British pound slipped 0.2% to $1.36745, nearing Friday's
low of $1.3670, a level not seen since Feb. 8.
    Bitcoin traded at $60,102.69 after rising as high
as $61,222.22 over the weekend, approaching the record peak of
$61,781.83 set one month ago. 
    Miners have not been selling recently minted tokens at a
time of greater demand from corporations and investors,
according to Justin d'Anethan, sales manager at digital asset
company Diginex in Hong Kong.
    
========================================================
    Currency bid prices at 542 GMT
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar                  $1.1886        $1.1901     -0.13%         -2.73%      +1.1911     +1.1885
 Dollar/Yen                   109.5470       109.6300    -0.04%         +6.09%      +109.7570   +109.4850
 Euro/Yen                     130.23         130.47      -0.18%         +2.61%      +130.6100   +130.1500
 Dollar/Swiss                 0.9265         0.9246      +0.22%         +4.74%      +0.9266     +0.9253
 Sterling/Dollar              1.3677         1.3706      -0.20%         +0.12%      +1.3712     +1.3670
 Dollar/Canadian              1.2564         1.2525      +0.32%         -1.32%      +1.2565     +1.2528
 Aussie/Dollar                0.7599         0.7618      -0.24%         -1.20%      +0.7627     +0.7596
 NZ                           0.7024         0.7030      -0.07%         -2.17%      +0.7042     +0.7014
 Dollar/Dollar All spots
Tokyo spots
Europe spots 
Volatilities 
Tokyo Forex market info from BOJ 
    

    
 (Reporting by Kevin Buckland
Editing by Shri Navaratnam and Gerry Doyle)
  
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