* Bitcoin up 6%
* Euro weakens
* U.S. Treasuries stabilise
* Australian dollar bounce
* Sterling rises on bets of vaccine-led economic rebound
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
LONDON, March 1 (Reuters) - The dollar held on to
three-weeks highs against major currencies on Monday as U.S. and
euro zone bond yields steadied, after a fixed-income selloff in
February that lifted demand for safe-haven currencies.
The Australian dollar and other riskier currencies rebounded
against the U.S. dollar during trading hours in Asia, but the
greenback gradually strengthened against peers.
At 1149 GMT, the dollar index was up 0.35% to 91.07
after posting its biggest gains since June on Friday.
The euro fell 0.23% to $1.2042, after dropping
0.9% at the end of last week, the most since April.
A survey showing upbeat euro zone factory activity in
February and soaring demand failed to prop up the bloc's
"It's quite possible that the market is readjusting the
bullish view it had on the euro at the beginning of the year",
said Jane Foley, a foreign exchange strategist at Rabobank.
She noted concerns about Europe's vaccine campaigns and its
growth potential while investors seeking to play the reflation
trade focused on the recovering U.S. economy and the new round
of stimulus of President Joe Biden.
Traders were also waiting for a speech later this afternoon
by President Christine Lagarde, who is under pressure to act
against rising yields in the euro zone.
"There is little doubt in my mind that central banks will
eventually lean quite hard against a sustained rise in yields.
They simply cant afford to see it happen with debt so high",
Deutsche Bank strategist Jim Reid told his clients in a morning
Yields on the benchmark 10-year German government bond
retreated to -0.30% from a one-year high of -0.20%
Ten-year U.S. bonds traded at 1.4376%, off
Thursday's one-year high of 1.614%.
"The bond market and risk assets are showing signs of
stabilisation after the big sell-off last week", ING analysts
commented, expecting that "the dollar's corrective rally should
pause for breath".
Early today, the risk-friendly Australian dollar
jumped 0.3% to $0.7728, following a 2.1% plunge on Friday.
The Reserve Bank of Australia will hold its monthly policy
meeting on Tuesday, and markets expect it to reinforce its
forward guidance for three more years of near-zero rates.
The British pound drew additional support from bets on a
faster vaccine-led economic recovery. Sterling rose
0.17% to $1.3945.
Against the yen, the dollar hit a six-month high
In cryptocurrency markets, bitcoin rose 5.9% to
$47,910 but was still off a record high of $58,354.14 hit on
(Reporting by Julien Ponthus, editing by Larry King)